Gannett Raises $500 Million in Private Placements
MCLEAN, VA.: Gannett
said it successfully raised $500 million in private placements with two senior
note offerings. One due in 2014 for $250 million aggregate principal carries an
interest rate of 8.75 percent; another of the same amount is due 2017 and
carries an interest rate of 9.375 percent.
Gannett (NYSE: GCI) will use the net proceeds to repay current outstanding
Shares of Gannett rose pulled up more than 6 percent over the weekend, from
around $11.85 at the opening bell to $12.60 in afternoon trading.
More on Gannett’s operations:
September 29, 2009: “Gannett Anticipates
Profit for 3Q09s”
Gannett said today it expects to post net income of between $93 million and
$100 million, sans special charges, for the third quarter ending Sept. 27.
After-tax special charges are expected to come in between $26 million and $32
million. Consolidated revenues are expected to come in at around $1.3 billion,
down 18 percent from last year and in line with the 2Q09 year-over-year
July 15, 2009: “Gannett 2Q
TV Revenues Dip 20 Percent”
Gannett TV revenues fell 20 percent in the second quarter compared to last
year, with a similar slide expected for the third quarter, the company said
today. Gannett’s 23 TV stations generated $148.4 million in 2Q09 compared to
$184.8 million a year ago.
April 16, 2009 “Gannett TV Station
Revenues Drop 16 Percent”
Gannett’s 23 TV stations generated positive cash flow for the struggling media
company in 1Q09. Operating cash flow was $52.7 million in 1Q09 for the stations
and the company’s digital signage business combined. Broadcasting and DS
revenues totaled $143.5 million in the quarter compared to $170.2 million in
1Q08. The decline was attributed to weakness in the auto and retail ad
categories, and the disappearance of political advertising, which generated $5
million during the year-earlier period.
April 7, 2009 “Gannett Offers Higher
Interest in Debt Exchange”
Gannett said it has commenced a private exchange offer for $200 million in
notes due in 2011 and 2012. The media company is offering to swap $1,000 in new
10 percent senior notes due 2015 for an equal sum of 5.75 percent notes due
2011. For every $1,000 of its 6.375 percent notes due 2012, Gannett will issue
10 percent senior notes due 2016.
March 23, 2009 “Gannett Continues
Gannett is repeating the money-saving strategy of one-week furloughs in the
upcoming quarter. The company employs around 31,000 people, who were required
to take a week without pay during the first quarter of the year, saving the
company a reported $20 million.
January 30, 2009: “Gannett TV Station
Revenue Holds Steady”
Gannett’s 23 TV stations pulled in $205.6 million during 4Q08, the McLean, Va.,
multimedia company said this week in preliminary results for the period. The
stations edged out 4Q07 revenues by nearly 2 percent. Gannett nonetheless
warned that 1Q09 results would likely be down year-over-year by roughly 15
Jan. 15, 2009 “Gannett’s Game Plan”
Virginia-based media empire Gannett said it will send its entire workforce home
without pay for one week, and freeze wages for the year, to avoid cutting jobs.
The payless period is supposed take affect during the first quarter of this
year. Gannett (NYSE: GCI) has more than 31,000 employees; 3,000 cuts were
announced last August. Craig Dubow, chairman, president and CEO of Gannett, is
taking the furlough as well.