McClatchy granted interim access to $12.5 million of DIP financing

By Caroline Salls

Pittsburgh, Feb. 18 – McClatchy Co. obtained court approval to access $12.5 million of a proposed $50 million in debtor-in-possession financing from Encina Business Credit on an interim basis, according to an order filed Friday with the U.S. Bankruptcy Court for the Southern District of New York.

The final hearing is scheduled for March 9.

Coupled with normal operating cash flows, McClatchy said the DIP financing provides ample liquidity for the company and all of its local news outlets to operate as usual and fulfill ongoing commitments to stakeholders.

The DIP financing is scheduled to mature 18 months from closing.

Interest will accrue at Libor plus 350 basis points. The applicable margin for letters of credit will be 325 bps.

McClatchy is a news and information provider based in Sacramento, Calif. The company filed bankruptcy on Feb. 13 under Chapter 11 case number 20-10418.

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