Gannett Announces $1.045 Billion Debt Refinancing

Gannett Co., Inc. (“Gannett”, “we”, “us”, “our”, or the “Company”) (NYSE: GCI) today announced that Gannett Holdings, LLC, a wholly owned subsidiary of the Company, has priced a $1.045 billion term loan (“Term Loan B”), which will be used to refinance the 11.5% term loan entered into for the acquisition of Gannett Media Corp. The Term Loan B priced at L+700, with a 0.75% LIBOR floor and maturity of February 2026, callable at any time. The new Term Loan B is expected to close early next week and is subject to execution of definitive documentation.

“We are pleased to announce the refinancing of our 11.5% term loan with a widely syndicated L+700 Term Loan B, which meaningfully improves the Company’s balance sheet and overall capital structure,” said Michael Reed, Chairman and Chief Executive Officer of Gannett. “The new Term Loan B will save us 375 basis points in annual interest, which is expected to result in approximately $90 million in cash interest savings in 2021 before the benefit of our expected asset sales further reducing debt. Refinancing our original term loan was our number one priority since closing the acquisition of Gannett Media Corp. in November 2019 and we are thrilled to have been able to do so this early into 2021, which is well ahead of our original target date. We will continue to make reducing our outstanding debt a top priority, with a goal of reaching first lien net leverage below 1.0x over the next two years. On the back of our strong preliminary fourth quarter results, we believe we are well positioned to organically grow our cash flows in 2021 and remain confident that we will be able to execute on $100-125 million in additional asset sales this year.”

The Term Loan B was arranged by Citigroup Global Markets Inc. and issued at a price of 98 with a maturity of 5 years, bringing the yield-to-maturity to 8.65%. The loan will amortize quarterly at a rate of 10% per annum beginning September 30, 2021. The loan is subject to a financial maintenance covenant, which requires minimum qualified cash of $30 million tested quarterly.

Additionally, the Company plans to issue, simultaneous with the closing of the new term loan, $84 million of the existing 6% senior secured convertible notes due in 2027 in order to refinance an equivalent amount of notes that will be put to the Company in connection with the refinancing. Therefore, the outstanding amount of the existing 6% convertible notes is not expected to change. Following these transactions, total debt outstanding will be $1.545 billion, which will include the $1.045 billion Term Loan B, $497.1 million 6% senior secured convertible notes, and $3.3 million of legacy Gannett Media Corp. 4.75% senior secured convertible notes.
https://investors.gannett.com/news/news-details/2021/Gannett-Announces-1.045-Billion-Debt-Refinancing/default.aspx

Related Posts

Book Manufacturers’ Institute Announces 2022 Award Winners

The Book Manufacturers’ Institute (BMI) has announced recipients of the Master Bookman and Signature Award, as well as three new members to the Cased-in Club. The honors, which will be presented Monday evening November 7th at the Awards Banquet at the Fall Annual Conference in St. Petersburg, Florida, recognize BMI members who not only contribute to the success of their organization, but also to the continued success of the book manufacturing industry. Matt Baehr, Executive Director of BMI, said, “This group of award winners has truly shaped the book industry for decades. I am very excited to celebrate their accomplishments, and the book industry as a whole.”

Spot truckload rates surge to start New Year

Amid extreme weather and tight capacity, national average spot truckload rates saw double-digit increases during the week ending Jan. 6, according to DAT Solutions, which operates the DAT network of load boards. The number of available loads increased 27%, in line with expectations when a full workweek follows a holiday-shortened one. However, the number of trucks posted to DAT load boards was up just 7.4% and the imbalance pushed load-to-truck ratios up for all three equipment types. In the van market, load posts jumped 26% but truck posts were up only 6%, as many truckers were still taking time off. The national average van rate was $2.30/mile, up 19 cents compared to the previous week. Click Read More below for additional information.

Meredith Announces Intention To Redeem Series A Preferred Stock And Raise $710 Million In New Debt; Provides Capital Structure Updates

Meredith Corporation announced its intention to raise $710 million aggregate principal amount of proposed new secured debt, subject to market and other conditions. A combination of cash on hand and proceeds of the new debt will be used to redeem all of its outstanding Series A preferred stock ("Series A Preferred Stock") and pay fees and expenses incurred in connection with the financing and redemption transactions. The company also announced it has secured an amendment with its revolving line of credit lenders allowing for greater access to the credit facility. "We believe these steps will create significant benefits for all of our stakeholders as we pursue our previously communicated strategy to ensure ample liquidity and enhance our financial flexibility," said Meredith President and Chief Executive Officer Tom Harty.
Back To Top
×Close search
Search