Gannett Announces Ongoing Debt Reduction
November 15 2023 - 3:15PM
Business Wire
Gannett Co., Inc. ("Gannett", "we", "us", "our", or the
"Company") (NYSE: GCI) announced today it will repurchase $14.0
million of 6.00% first lien notes due November 1, 2026 (the "2026
Senior Notes") for approximately $12.0 million, representing a
discount to par value. The transaction is expected to close on
November 17, 2023. In connection with the repurchase of the 2026
Senior Notes, the Company will receive a waiver from certain
lenders under its five-year senior secured term loan facility that
will reduce the scheduled amortization payment for the fiscal
quarter ending December 31, 2023 payable to those lenders by the
amount spent by the Company to repurchase the 2026 Senior
Notes.
"We continue to opportunistically take out additional senior
notes below par value by working with our lenders, and this
repurchase mirrors the executed agreement announced in
mid-September," said Michael Reed, Chairman and Chief Executive
Officer. "With the closing of this transaction, and subsequent to
the third quarter, we will have repaid $20.2 million of debt, which
will bring our year-to-date total to approximately $138.0 million,
which exceeds our initial projections outlined at the beginning of
the year. We are pleased with the pace of our debt reduction this
year, including bringing first lien net leverage to below 2.0x in
the third quarter this year. Debt repayment remains a high priority
and we expect to continue to improve our capital structure through
significant debt reduction, while maintaining a healthy balance
sheet and a strong liquidity position."
About Gannett
Gannett Co., Inc. (NYSE: GCI) is a subscription-led and
digitally-focused media and marketing solutions company committed
to empowering communities to thrive. With an unmatched reach at the
national and local level, Gannett touches the lives of millions
with our Pulitzer Prize-winning content, consumer experiences and
benefits, and advertiser products and services. Our current
portfolio of media assets includes the USA TODAY NETWORK, which
includes USA TODAY, and local media organizations in 43 states in
the United States, and Newsquest, a wholly-owned subsidiary
operating in the United Kingdom. We also own digital marketing
services companies under the brand LocaliQ, which provide a
cloud-based platform of products to enable small and medium-sized
businesses to accomplish their marketing goals. In addition, our
portfolio includes what we believe is the largest media-owned
events business in the U.S., USA TODAY NETWORK Ventures. To connect
with us, visit www.gannett.com.
Cautionary Statement Regarding
Forward-Looking Statements
Certain items in this press release may constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, including, but not
limited to, statements regarding our business outlook, our ability
to create long-term stockholder value, our expectations, in terms
of both amount and timing, with respect to debt repayment, the
terms of our debt repayment, our capital structure, our strategy,
and our ability to achieve our operating priorities. The Company
makes no guarantees or assurances that sales of any of the real
estate or other asset sales in negotiation will close. Words such
as "expect(s)", “continue(s)", "believe(s)", "look forward",
"will", "remain(s)", and similar expressions are intended to
identify such forward-looking statements. These statements are
based on management’s current expectations and beliefs and are
subject to a number of risks and uncertainties. These and other
risks and uncertainties could cause actual results to differ
materially from those described in the forward-looking statements,
many of which are beyond our control. The Company can give no
assurance its expectations will be attained. Accordingly, you
should not place undue reliance on any forward-looking statements
contained in this press release. For a discussion of some of the
risks and important factors that could cause actual results to
differ from such forward-looking statements, see the risks and
other factors detailed from time to time in the Company’s most
recent Annual Report on Form 10-K, our quarterly reports on Form
10-Q, and our other filings with the Securities and Exchange
Commission. Furthermore, new risks and uncertainties emerge from
time to time, and it is not possible for the Company to predict or
assess the impact of every factor that may cause its actual results
to differ from those contained in any forward-looking statements.
Such forward-looking statements speak only as of the date of this
press release. Except to the extent required by law, the Company
expressly disclaims any obligation to release publicly any updates
or revisions to any forward-looking statements contained herein to
reflect any change in the Company’s expectations with regard
thereto or change in events, conditions or circumstances on which
any statement is based.
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version on businesswire.com: https://www.businesswire.com/news/home/20231115131656/en/
For investor inquiries, contact: Matt Esposito Investor
Relations 703-854-3000 investors@gannett.com
For media inquiries, contact: Lark-Marie Anton Corporate
Communications 646-906-4087 lark@gannett.com
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