Gannett Announces Further Real Estate Sales and Debt Repayment
December 17 2020 - 6:45AM
Business Wire
Gannett Co., Inc. ("Gannett", "we", "us", "our", or the
“Company") (NYSE: GCI) today announced that from the beginning of
the fourth quarter through the end of this week, the Company will
have repaid approximately $647 million of its 11.5% term loan,
reducing the outstanding balance to $1.082 billion. The sources of
funds for the $647 million of repayment are:
- $497 million of proceeds from the Company’s issuance of 6%
senior secured convertible notes due 2027;
- Approximately $135 million of real estate and other non-core
asset sales; and
- Approximately $15 million of excess cash sweeps.
“We are pleased to be closing the year having made significant
progress to improve our capital structure. The actions we have
taken to date have lowered our interest payments by $45 million
annually. Our asset sales have accelerated our debt repayment
expectations and have increased our confidence in our ability to
refinance the remaining term loan during the first half of 2021,”
said Michael Reed, Gannett Chairman and Chief Executive Officer.
“Additionally, revenue trends have continued to improve, which we
expect will drive strong fourth quarter results and set us up to
start the year with strong momentum. Our real estate sales pipeline
and amortization payments are expected to further reduce debt by
approximately $100 million by early 2021.”
Accounting for recent real estate sales, total debt outstanding
is $1.582 billion, which includes the $1.082 billion outstanding
term loan, $497.1 million 6% senior secured convertible notes, and
$3.3 million of legacy Gannett 4.75% senior secured convertible
notes.
About Gannett
Gannett Co., Inc. (NYSE: GCI) is an innovative, digitally
focused media and marketing solutions company committed to the
communities in our network and helping them build relationships
with their local businesses. 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. Its portfolio
includes the USA TODAY, local media organizations in 46 states in
the U.S. and Guam, and Newsquest, a wholly owned subsidiary with
over 140 local media brands operating in the United Kingdom.
Gannett also owns the digital marketing services companies
ReachLocal, Inc., UpCurve, Inc., and WordStream, Inc. and runs the
largest media-owned events business in the U.S., USA TODAY Network
Ventures, formerly GateHouse Live. 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 expectations, in terms of both
amount and timing, with respect to debt repayment and debt
refinancing, and statements regarding expected real estate and
other non-core asset sales, revenue trends and revenues and
earnings results. 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 Annual Report on Form
10-K, Quarterly Reports on Form 10-Q, and 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. 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/20201217005274/en/
For investor inquiries, contact: Ashley Higgins Investor
Relations 212-479-3160 investors@gannett.com
For media inquiries, contact: Stephanie Tackach Director,
Public Relations 212-715-5490 stackach@gannett.com
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