McClatchy Announces Final Results Of Debt Tender Offer At Par For 2022 Notes
SACRAMENTO, Calif., Oct. 20, 2017 /PRNewswire/ -- The McClatchy Company (NYSE American-MNI) announced today the final results of its offer to purchase for cash up to $40 million of its 9.0% Senior Secured Notes due in 2022 (the "9.0% Notes") pursuant to the terms and conditions of the Offer to Purchase dated September 20, 2017 (the "Offer"). Based on the results provided by the trustee of the 9.0% Notes, $0.1 million aggregate principal amount of the 9.0% Notes were tendered prior to the Offer's expiration at 5 p.m., Eastern time on Thursday, October 19, 2017.
As previously announced, and in compliance with the terms of the indenture for the 9.0% Notes, McClatchy was required to offer to purchase for cash up to $40 million of the outstanding 9.0% Notes at par as a result of selling The Kansas City Star's office building and land and The Sacramento Bee building and surrounding land.
Elaine Lintecum, McClatchy's chief financial officer, said, "These 9.0% Notes continue to trade at a premium and similar to our Offer made in August of 2017, we are not surprised that a majority of holders declined our offer. Now that the tender offer has expired, we will consider the appropriate use of the remaining proceeds. We expect that we may use some of the remaining proceeds, along with cash from operations, to repurchase the company's outstanding senior secured or unsecured notes in privately negotiated transactions, to reinvest in the company's digital transformation, or other uses as determined by our board of directors."
About McClatchy
McClatchy is publisher of iconic brands such as the Miami Herald, The Kansas City Star, The Sacramento Bee, The Charlotte Observer, The (Raleigh) News & Observer, and the (Fort Worth) Star-Telegram. McClatchy operates 30 media companies in 14 states, providing each of its communities with high-quality news and advertising services in a wide array of digital and print formats. McClatchy is headquartered in Sacramento, Calif., and listed on the New York Stock Exchange American under the symbol MNI.
Additional Information
Statements in this press release regarding future financial and operating results, including our strategies for success and their effects, our real estate monetization efforts and the repurchase of outstanding notes, revenues, and management's efforts with respect to cost reduction efforts and efficiencies, cash expenses, revenues, adjusted EBITDA, debt levels, interest costs and creation of shareholder value as well as future opportunities for the company and any other statements about management's future expectations, beliefs, goals, plans or prospects constitute forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Any statements that are not statements of historical fact (including statements containing the words "believes," "plans," "anticipates," "expects," "estimates" and similar expressions) should also be considered to be forward-looking statements. There are a number of important risks and uncertainties that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including: McClatchy may not generate cash from operations, or otherwise, necessary to reduce debt or meet debt covenants as expected; we may not be successful in reducing debt whether through tenders offers, open market repurchase programs or other negotiated transactions; including sales of real estate properties may not close as anticipated or result in cash distributions in the amount or timing anticipated; McClatchy may not successfully implement audience strategies designed to increase audience revenues and may experience decreased audience volumes or subscriptions; McClatchy may experience diminished revenues from advertising; McClatchy may not achieve its expense reduction targets including efforts related to legacy expense initiatives or may do harm to its operations in attempting to achieve such targets; McClatchy's operations have been, and will likely continue to be, adversely affected by competition, including competition from internet publishing and advertising platforms; increases in the cost of newsprint; bankruptcies or financial strain of its major advertising customers; litigation or any potential litigation; geo-political uncertainties including the risk of war; changes in printing and distribution costs from anticipated levels, including changes in postal rates or agreements; changes in interest rates; changes in pension assets and liabilities; changes in factors that impact pension contribution requirements, including, without limitation, the value of the company-owned real property that McClatchy has contributed to its pension plan; increased consolidation among major retailers in our markets or other events depressing the level of advertising; our inability to negotiate and obtain favorable terms under collective bargaining agreements with unions; competitive action by other companies; an inability to fully implement and execute its share repurchase plan; and other factors, many of which are beyond our control; as well as the other risks detailed from time to time in the company's publicly filed documents, including the company's Annual Report on Form 10-K for the year ended Dec. 25, 2016, filed with the U.S. Securities and Exchange Commission. McClatchy disclaims any intention and assumes no obligation to update the forward-looking information contained in this release.
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