McClatchy negotiates flexibility on debt
Published: Sat, Sep. 27, 2008 12:30AM
Modified Sat, Sep. 27, 2008 01:40AM
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closeThe McClatchy Co., publisher of The News & Observer, said Friday that it has renegotiated its agreement with lenders to gain flexibility, winning concessions that help the company avoid a potential default as advertising revenue continued falling.
McClatchy said the amendment to a $1.175 billion debt agreement will change its terms to account for the company's reduced cash flow. In return, McClatchy agreed to put up more collateral and pay higher interest rates. "It does appear to give them some pretty meaningful breathing room," said Mike Simonton, media analyst at Fitch Ratings.
Based in Sacramento, McClatchy is one of the nation's leading newspaper publishers with 30 daily papers and 50 nondaily newspapers.
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