McClatchy restructures $1.15b debt load
Posted by Simon Day on May 23, 2009 at 1:42 AM
The McClatchy Co. is restructuring US$1.15 billion in debt and revising its credit agreement in an attempt to cut into its estimated $2 billion worth of debt, The Tampa Bay Business Journal reported Friday.
McClatchy, the third largest newspaper publisher in the United States, said the debt rearrangement will allow the exchange of debt payments due between 2011 and 2017, as well as other long term debt due between 2027 and 2029, for $60 million in cash and $175 million of principal payments due in 2014.
McClatchy, the third largest newspaper publisher in the United States, said the debt rearrangement will allow the exchange of debt payments due between 2011 and 2017, as well as other long term debt due between 2027 and 2029, for $60 million in cash and $175 million of principal payments due in 2014.
The company also revised its $1.15 billion credit agreement, creating versatility in its revolving credit facility, according to the Business Journal.
"This enhanced flexibility is clearly a positive development," McClatchy CFO Pat Talamantes stated in a press release.
McClatchy currently has $140.8 million available under its credit agreements.
The company has also proposed five initiatives aimed to increase advertising revenue, which last year fell almost 18 percent. One such initiative will see the newspaper firm begin paying advertising agencies a sales commission, something broadcasters and other media outlets have done for a long time, the Business Journal reported.
McClatchy Chairman and CEO Gary Pruitt said the company is "reaching out to these agencies with new incentives and introducing them to our full complement of print and digital advertising products."
"This enhanced flexibility is clearly a positive development," McClatchy CFO Pat Talamantes stated in a press release.
McClatchy currently has $140.8 million available under its credit agreements.
The company has also proposed five initiatives aimed to increase advertising revenue, which last year fell almost 18 percent. One such initiative will see the newspaper firm begin paying advertising agencies a sales commission, something broadcasters and other media outlets have done for a long time, the Business Journal reported.
McClatchy Chairman and CEO Gary Pruitt said the company is "reaching out to these agencies with new incentives and introducing them to our full complement of print and digital advertising products."
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