McClatchy sells $875M in bonds
Sacramento Business Journal - by Melanie Turner Staff writer
The McClatchy Co. sold $875 million worth of bonds Thursday to help the company pay down bank and bond debt that’s coming due over the next four years.
McClatchy, publisher of The Sacramento Bee and 29 other daily newspapers, said it will use the proceeds to pay down a $623 million line of credit and $166 million in bonds. The new bonds don’t come due until 2017, so McClatchy will essentially push back the maturity of a good portion of its debts.
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The bonds were sold at 11.5 percent interest.
Also today, Sacramento-based McClatchy (NYSE: MNI) raised the amount it is offering to buy back $166 million in bonds that mature June 1, 2011. McClatchy is offering $1.05, instead of $1.02, for every $1 in principal. On Wednesday, McClatchy also raised the amount it’s offering to buy back $24.2 million worth of bonds.
Shares of McClatchy closed at $5.02 Thursday, down 31 cents, or 5.82 percent.
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