Gannett Co., Inc. has borrowed US$1.2 billion "demonstrating the growing rush by businesses to lock in funding as commercial paper markets shut down around them," the Financial Times reported Saturday.

Gannett is the largest U.S. newspaper publisher, as measured by total daily circulation. Its assets include flagship USA Today and the weekly USA Weekend, along with many others.

Gannett, which has been hit by declines in the U.S. newspaper market and turbulent U.S. economy, made agreements with Bank of America, JPMorgan Chase and Barclays to repay commercial paper, the Financial Times reported.

Earlier last week, Gannett announced it took the “prudent liquidity measure” of drawing down on its facilities as of September 30. Standard & Poor's rating services stated last week that Gannett had “significant untapped availability under its $3.9bn of committed revolving credit facilities, far in excess of (its) total commercial paper obligations.”

After the huge and unexpected losses from the bankruptcy of Lehman Brothers almost three weeks ago, investors are leaving money market funds with investments in bank and company debt.

Tony Crescenzi, chief bond strategist at Miller Tabak Asset Management, told the Financial Times that “the $95 billion decline in the amount of commercial paper outstanding would be more palatable for the financial markets if the issuers of commercial paper were finding outlets to raise capital. The problem is that they're not.”