Gannett gets tenders for $67 million 5¾% notes, $193 million 6 3/8% notes in exchange

By Jennifer Chiou

New York, May 6 - Gannett Co., Inc. said it obtained tenders from holders of about $67 million of its 5¾% notes due 2011 and about $193 million of its 6 3/8% notes due 2012 in its private exchange offer for the notes.

The exchange offer expired at 5 p.m. ET on May 5. The settlement date is on Thursday.

The early participation deadline was also 5 p.m. ET on May 5, previously pushed back from May 1 and, before that, April 21.

At May 1, the company had received tenders from holders of $44 million principal amount of 5¾% notes and $189 million principal amount of 6 3/8% notes.

Gannett previously waived the exchange offer's minimum tender condition for the 5¾% notes, in which the offer was conditioned on exchanges being received for at least $100 million principal amount of new 10% notes due 2015 and at least $100 million principal amount of new 10% notes due 2016.

Holders will receive new 10% senior notes due 2015 in exchange for the 5¾% notes and new 10% senior notes due 2016 in exchange for the 6 3/8% notes.

The company is offering $1,000 principal amount of new notes for each $1,000 principal amount of old notes exchanged. This includes an early participation payment of $30.00 principal amount of new notes for each old note tendered by the early participation deadline.

The company will also pay accrued interest up to but excluding the exchange date in cash.

The new notes will be senior unsecured obligations and will be guaranteed by some of Gannett's subsidiaries.

"As a result of this opportunistic transaction, more than 25% of our outstanding bonds (exclusive of the May 2009 maturity) will have a maturity date extending into 2015 or 2016," Gracia C. Martore, executive vice president and chief financial officer, said in a news release.

The exchange offer was only made to qualified institutional buyers and certain non-U.S. investors located outside the United States.

Gannett is a news and information company based in McLean, Va.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.