RLPC-Newport Television to launch $590 mln loan

NEW YORK, March 24 (Reuters) -Wachovia, Goldman Sachs and UBS are expected to launch next week a $590 million bank loan backing the acquisition of 56 television stations from Clear Channel Communications(CCU.N: Quote, Profile, Research), an investor told Reuters Loan Pricing Corp on Monday.

The new company formed from the acquisition, Newport Television LLC, is expected to reduce the size of the debt it will incur in the transaction by disposing of at least 17 television stations, the source said.

The loan has one financial covenant and consists of a $75 million revolving loan and a $515 million term loan B. Price talk on the term loan B is 500 basis points over the London interbank offered rate, with a discount of 95 cents on the dollar.

(Reporting by Smita Madhur)