McClatchy amends, announces early results of tender for 9 7/8% debentures, 7 1/8%, 4 5/8% notes

By Jennifer Chiou

New York, May 8 - McClatchy Co. amended and reported the early results of its tender offer for up to $300 million of its outstanding notes and debentures, including up to $150 million of its $200 million of outstanding 9 7/8% debentures due April 15, 2009; up to $130 million of its $300 million of outstanding 7 1/8% notes due June 1, 2011; and up to $50 million of its $200 million of outstanding 4 5/8% notes due Nov. 1, 2014.

In total, the company will not accept tenders for more than $300 million of securities, which are listed in priority of acceptance, up from a previous total of $250 million. The cap for the 7 1/8% notes was lifted from $100 million.

As of the early tender deadline at 5 p.m. ET on May 6, the company said it obtained tenders from holders of $153.25 million of its 9 7/8% debentures, $178.04 million of its 7 1/8% notes and $20.47 million of its 4 5/8% notes.

The offer is set to expire at 5 p.m. ET on May 21. It began on April 23.

McClatchy said the payouts for each $1,000 principal amount of securities that are tendered by the early deadline will be $1,010 for the 9 7/8% debentures, $900 for the 7 1/8% notes and $700 for the 4 5/8% notes, assuming the tenders are accepted.

For securities tendered after the early deadline, those amounts will be reduced by $25 per $1,000 principal amount.

Holders will also receive accrued interest up to but excluding the settlement date.

Tenders may be withdrawn up to, but not after, the early deadline.

If the company receives tenders for more than $300 million of the securities, the company will accept up to the maximum amount of 9 7/8% debentures before accepting any 7 1/8% notes and up to the maximum amount of 7 1/8% notes before any 4 5/8% notes.

Tendered securities within each series will be accepted on a pro-rated basis.

J.P. Morgan Securities Inc. is the dealer manager (contact liability management group at 866 834-4666 or collect 212 834-4077). Global Bondholder Services Corp. is the information agent (866 477-3900 or collect 212 430-3774).

McClatchy is a newspaper company based in Sacramento.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.