Gannett announces closing of debt refinancing
MCLEAN, Virginia – (COMMERCIAL THREAD) – Gannett Co., Inc. (“Gannett”, “we”, “our”, “our”, or the “Company”) (NYSE: GCI) today announced that Gannett Holdings LLC (the ” Borrower “), a wholly owned subsidiary of the Company, entered into a five-year senior secured term loan facility in the aggregate principal amount of $ 516 million (the” Credit Facility “) on the 15th October 2021. The proceeds of the Credit Facility, together with the net proceeds of the private placement in an aggregate principal amount of $ 400 million of 6.00% Senior Notes due 2026 (the “Notes first rank ”), were allocated to fully repay the existing term loan. The sale of the Senior Bonds was also closed on October 15, 2021.
Loans under the credit facility bear interest at an annual rate equal to LIBOR plus a margin of 5.00% with a floor of 50 basis points. ability to incur debt, grant liens, sell assets, make investments and pay dividends, in each case with the usual exceptions, including an exception that allows dividends and junior debt buyouts or equity in (i) for a maximum amount of $ 25 million per fiscal year quarter if the ratio of secured debt on an equal basis with the credit facility to EBITDA of the Company and its restricted subsidiaries (the “ratio of senior net leverage ”) for that fiscal quarter is equal to or less than 2.00 to 1.00, (ii) an amount of up to $ 50 million per fiscal quarter if the senior net leverage ratio for that quarter tax is equal to or less than 1.50 to 1.00 and (iii) an unlimited amount if the senior net leverage ratio for that fiscal quarter is equal to or less than 1.00 to 1.00. All obligations under the Credit Facility are secured by all or substantially all of the assets of the Company and the Company’s wholly owned domestic subsidiaries (the “Guarantors”). The obligations of the Borrower under the Credit Facility are secured on a senior basis by the Company and the Guarantors.
“This refinancing reduces our cost of capital by almost 200 basis points, thereby saving significant interest charges, while improving the terms of our previous credit facility entered into in February 2021,” said Michael Reed, chairman- Managing Director of Gannett. “Since the acquisition of the former Gannett in November 2019, we have paid off $ 379 million in debt and reduced our cost of capital by 570 basis points. The Company plans to continue to optimize its overall capital structure and aggressively repay its debt, which will continue to reduce our annual interest expense and overall leverage. ”
Gannett Co., Inc. (NYSE: GCI) is a subscription-focused, digital media and marketing solutions company committed to empowering communities to thrive. With unparalleled reach nationally and locally, Gannett touches the lives of millions of people with our Pulitzer Prize-winning content, our experiences and benefits for consumers, and our products and services for advertisers. Our current portfolio of media assets includes USA TODAY, local media organizations in 46 US states, and Newsquest, a wholly owned subsidiary operating in the UK with over 120 local news media brands. Gannett also owns the digital marketing services companies ReachLocal, Inc., UpCurve, Inc. and WordStream, Inc., which are marketed under the LOCALiQ brand, and operates the largest media-owned events business in the United States, USA TODAY NETWORK Ventures. To contact us, visit www.gannett.com.
Caution Regarding Forward-Looking Statements
Certain elements of this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding our ability to repay our debts and to reduce our interest expenses. Words such as “expect”, “will” and similar expressions are intended to identify these forward-looking statements. These statements are based on the current expectations and beliefs of management and are subject to a number of risks and uncertainties. These and other risks and uncertainties could cause actual results to differ materially from those described in forward-looking statements, many of which are beyond our control. The Company cannot guarantee that its expectations will be met. Therefore, you should not place undue reliance on any forward-looking statements contained in this press release. For a discussion of some of the risks and important factors that could cause actual results to differ from these forward-looking statements, see the risks and other factors detailed from time to time in the Company’s 2020 Annual Report on Form 10- K, and other filings with the Securities and Exchange Commission. In addition, new risks and uncertainties emerge from time to time, and it is not possible for the Company to predict or assess the impact of every factor that may cause its actual results to differ from those contained in the statements. prospective. These forward-looking statements speak only as of the date of this press release. The Company expressly disclaims any obligation to publicly publish any update or revision to any forward-looking statement contained herein to reflect any change in the Company’s expectations in this regard or any change in the events, conditions or circumstances on which a statement is based.