By: Mark Fitzgerald
The McClatchy Co. Wednesday announced the early participation results of its offer to buy back debt coming due next year and in 2014. The results indicated the parent company of The Miami Herald and Sacramento Bee got nearly all the notes it wanted to buy.
McClatchy said holders of $147.2 million in the notes coming due in June 2011 took the offer, which included a premium of $50 for every $1,000 in senior notes proffered. McClatchy had said it would buy $166 million of notes outstanding.
For notes due 2014, McClatchy added a higher premium paying 1,288.75 for every $1,000 in notes. McClatchy said it would buy all approximately $24 million of the debt. Noteholders proffered practically all of it, $23.85 million.
The note buyback is part of a refinancing of some of the $1.95 billion in debt. The parent company of The Miami Herald and Sacramento Bee is issuing $875 million of senior secured notes to pay back $614 million in bank debt, and push out the deadlines for repayment. The deadline for that offering is Thursday.