McClatchy plans asset-based revolving facility, junior lien term loan

By Susanna Moon

Chicago, June 27 – McClatchy Co. announced plans for a new asset-based revolving credit facility and junior lien term loan financing, which will be used to redeem its 9% senior secured notes due 2022.

McClatchy also plans to price $310 million principal amount of senior secured notes due 2026 under Rule 144A and Regulation S, according to an announcement.

The company said on April 27 that it planned to refinance its 9% notes due 2022 and that it entered into a term sheet framework agreement on Thursday with Chatham Asset Management, LLC under which Chatham will provide a $250 million tranche A term loan and about $168.5 million tranche B term loan to a wholly owned subsidiary of the company, with some proceeds slated to refinance the 9% notes.

Other proceeds were to be used to repurchase about $82.1 million of the company’s 7.15% debentures due Nov. 1, 2027 and about $274 million of the 6 7/8% debentures due March 15, 2029, in each case held by Chatham.

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

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