Tribune Publishing Company -- Moody's says cash contribution by Merrick Media and suspension of dividends are credit positive for Tribune Publishing

New York, February 04, 2016 -- Moody's Investors Service said on February 4th, 2016, Tribune Publishing Company ("Tribune Publishing") announced that it has entered into share purchase agreement with Merrick Media, LLC that will provide for a purchase of 5.2 million shares by Merrick Media, LLC for a total price of $44.4 million, resulting in Merrick Media, LLC owning 16.6% of outstanding common stock and becoming its largest shareholder. In connection with the private placement of shares, Tribune Publishing appointed Michael W. Ferro, Jr. (Chairman and CEO of Merrick Media, LLC) to be its Non-Executive Chairman of the Board. Furthermore, the company's board voted to suspend its quarterly common stock cash dividend. Moody's views this cash contribution combined with a suspension of the quarterly dividend to be a credit positive, boosting the company's liquidity and providing resources of future investments and growth. There is no immediate impact on the credit ratings.

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