McClatchy Co announced it has bought US$300 million in aggregate principal amount of debt securities, which will help the U.S. newspaper publisher reduce its debt by $17.5 million, Editor & Publisher reported Thursday.

Pat Talamantes, McClatchy CFO, called the oversubscription a “win-win transaction for the company and its bond holders.”

McClatchy will continue to concentrate on paying down its debt, and expects debt to be down to about $2 billion by the end of the year, Talamantes said in a statement, E&P reported.

“We were able to reduce debt by $17.5 million and lower our ongoing interest costs, and expect to record a $19.5 million pre-tax gain on the extinguishment of this debt,” Talamantes said in a statement.