McClatchy reduces credit facility, extends maturity date by two years

By Marisa Wong

Madison, Wis., Oct. 23 – McClatchy Co. amended its third amended and restated credit agreement dated Dec. 18, 2012 with Bank of America, NA as administrative agent and JPMorgan Chase Bank, NA as syndication agent to reduce aggregate commitments under the facility to $65 million from $75 million, according to an 8-K filing with the Securities and Exchange Commission.

The amendment, completed on Tuesday, also extends the maturity date of the credit facility to Dec. 18, 2019 from Dec. 18, 2017.

Also on Tuesday, the company and Bank of America entered into a collateralized issuance and reimbursement agreement for up to $35 million of letters of credit.

The company is required to provide cash collateral equal to 101% of the aggregate undrawn stated amount of each outstanding letter of credit issued under the agreement.

The company has agreed to pay a commitment fee equal to 0.5% per annum on the daily unused portion of the commitment amount. The letter-of-credit agreement matures on Dec. 18, 2019.

As of Tuesday, there were no letters of credit outstanding under the agreement.

McClatchy is a news and information provider based in Sacramento, Calif.

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