Gannett Extends $200 Million Note Exchange Deadline
May 4, 2009
MCLEAN, VA.: Gannett today said the early participation date for its recent private-exchange offer has been extended to May 5 from April 21. In early April, the company commenced a private exchange for notes due in the next three years for longer term debt with a higher interest rate. Gannett (NYSE: GCI) was looking to swap $200 million in 5.75 and 6.375 percent notes due in 2011 and 2012 respectively, for 10 percent notes due in 2015 and 2016. Both were conditional on GCI getting $100 million in tender offers for both sets of notes. It was made exclusively to institutional buyers and certain non-U.S. investors.
GCI said that as of May 1, it had received tender offers in the amount of around $44 million of the 2011 notes and around $189 million worth of 2012 notes, according to Global Bondholder Services Corp., the depositary handling the exchange offer. A previously established minimum on the 2011 notes has now been waived as well.
Gannett has spent the first months of 2009 paring down to endure the recession. Compulsory furloughs have been imposed on all 31,000 employees and executive salaries were frozen. Its long-term debt at the end of the year stood at $3.8 billion; cash and equivalents on hand were around $100 million. Gannett’s combined 1Q09 revenues were $1.38 billion, down 17 percent. Consolidated net income was down 60 percent to $77 million. Shares of the media company have been hammering out a slow recovery from hitting an all-time low of $1.85 in March to around $4.40 at mid-day today. – Deborah D. McAdams