McClatchy agrees to buy back $409.35 million 9% notes, 5¾% notes

By Angela McDaniels

Tacoma, Wash., Nov. 5 – McClatchy Co. plans to repurchase $259.35 million principal amount of its 9% senior secured notes due 2022 and $150 million principal amount of its 5¾% notes due 2017, according to an 8-K filing with the Securities and Exchange Commission.

The repurchase will be made under privately negotiated agreements reached on Nov. 5 with Chatham Asset Management, LLC and Leon G. Cooperman and Omega Charitable Partners, LP.

Under the agreements, the total purchase price for the $409.35 million principal amount of notes will be $459.5 million plus accrued interest.

The repurchase is subject to a condition that no more than $95.5 million of the 9% notes are submitted in the company’s asset purchase offer, which will expire on Nov. 12. If more than $95.5 million of the 9% notes are submitted in the offer, the amount of 9% notes and 5¾% notes subject to repurchase under the agreements will be reduced ratably for the amount in excess of $95.5 million.

The company expects to complete the repurchases on Nov. 13.

As previously reported, the company is offering to repurchase up to $406 million of the 9% notes at par.

The note indenture requires McClatchy to offer to buy back the notes with the after-tax proceeds of the sale of its interest in Cars.com. The company said any proceeds not used in the tender offer may be used for initiatives and/or investments to continue its digital transformation, to selectively repurchase outstanding notes or for other corporate purposes.

McClatchy is a news and information provider based in Sacramento, Calif.

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