Time draws full $700 million under term loan for note, dividend

By Marisa Wong

Madison, Wis., May 30 - Time Inc. borrowed the full committed amount of $700 million under its term loan on May 29, according to an 8-K filing with the Securities and Exchange Commission.

Time entered into the credit agreement on April 24 with Citibank, NA as administrative agent.

As previously disclosed, Time expects to use a portion of the term loan proceeds to fund the repayment in cash of the outstanding balance of a note issued by one of its wholly owned subsidiaries to a wholly owned subsidiary of Time Warner in connection with the acquisition of its U.K. publishing business.

Remaining loans proceeds will be used to declare and distribute a special cash dividend to Time Warner.

The company expects that the amount needed to repay the note will be aout $121 million and the amount of the special dividend will be about $590 million.

All then-outstanding principal and interest under the term loan will be due and payable on April 24, 2021.

Borrowings bear interest Libor plus 325 basis points, subject to a 1% Libor floor.

Prepayments made on or prior to May 29, 2015, as a result of refinancing or repricing transactions, are subject to a fee equal to 1% of the principal amount refinanced or repriced.

Time is a New York-based media company.

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