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McClatchy gets final OK of DIP facility; management changes announced
By Caroline Salls
Pittsburgh, March 26 – The McClatchy Co. obtained final court approval to access $50 million in debtor-in-possession financing from Encina Business Credit, according to an 8-K filed Thursday with the Securities and Exchange Commission.
As previously reported, the financing approved Wednesday by the U.S. Bankruptcy Court for the Southern District of New York will be used along with normal operating cash flows to provide 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.
In addition, McClatchy said in a news release filed as an exhibit to the 8-K that its board of directors approved the appointment of Peter Farr as chief financial officer.
The company said Farr has served as controller and chief accounting officer since joining McClatchy in 2018 and will continue in his role as CAO. He succeeds Elaine Lintecum as CFO, who will serve as special adviser to the chief executive officer until her retirement on June 30.
According to the release, McClatchy has also promoted Stephanie Zarate to corporate controller and treasurer. Zarate will also continue in her role as investor relations manager, a position she has held since 2016.
Farr and Zarate will assume their new management roles beginning on March 30.
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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