Newspaper owner McClatchy lures most bond holders with buyback in refinancing move
By APWednesday, February 10, 2010
McClatchy lures most bond holders with buyback
SACRAMENTO, Calif. — The McClatchy Co. said Wednesday that bond holders representing most of the notes it has offered to buy back have agreed to sell.
The newspaper publisher said $147.2 million of the total $166 million in notes due next year have been tendered at a price of $1,050 for every $1,000 notes held.
Additionally, $23.9 million of the total $24 million in notes due in 2014 were tendered at a price of $1,338.75 for every $1,000 worth held.
McClatchy sold $875 million worth of 7-year bonds last week that to finance the buybacks. Pushing back the deadline should at least temporarily ease concerns about whether it can pay off its borrowings. Like other publishers, McClatchy has seen advertising revenue drop because of the recession and competition on the Web.
McClatchy shares fell 8 cents to $4.63 in afternoon trading.
