Gannett Co. Selling $1 Billion in Notes

By: E&P Staff Gannett Co. said Tuesday it will sell $1 billion in unsecured senior convertible notes due 2037 in an underwritten public offering through Citi.

The notes will be used to pay down a portion of its outstanding U.S. commercial paper, Gannett said.

The notes have an initial conversion rate of 10.8530 shares of Gannett common stock per $1 principal amount, giving them an initial conversion price of $92.14 per share.

Gannett said the interest rate, initially 5.09% annually, will float at a rate equal to one-month LIBOR (London Inter-Bank Offered Rate), reset monthly, minus 23 basis points.

Interest will be payable on January 15, April 15, July 15 and October 15 of each year, beginning October 15, 2007.

The convertible notes will rank equally with Gannett's outstanding senior debt. The offering is expected to close on June 29, 2007, Gannett said.


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