Gannett Completes $237 Million Exchange
May 6, 2009
McLEAN, VA.: Gannett today announced results of its $200 million private exchange offer, which expired yesterday. Gannett (NYSE: GCI) said that its depository, Global Bondholder Services Corp., had received tenders in the amount of $44 million for 5.75 percent notes due in 2011 and $193 million for 6.375 percent notes due in 2012. Gannett offered to exchange those notes for 10 percent bonds due in 2015 and 2016, respectively.
“We are very pleased with the results of the exchange offer,” said Gracia C. Martore, GCI executive vice president and chief financial officer. “As a result of this opportunistic transaction, almost 25 percent of our outstanding bonds--exclusive of the May 2009 maturity--will have a maturity date extending into 2015 or 2016.”
Shares of Gannett jumped in opening trades today from a close last night of around $4.90 to a high of $5.75 today, reflecting a swing in the wider market motivated by employment data. The Wall Street Journal reported that the private sector lost 491,000 jobs in April rather than the 650,000 expected, indicating a slowing in the pace of job losses compared to the first quarter of the year. The 26 broadcast network and TV groups tracked by Television Broadcast, at least 20 were holding on to small increases in share price at mid-day. -- Deborah D. McAdams