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McClatchy notes price at par to yield 9%; terms

The McClatchy Company today completed an offering of secured notes via bookrunners J.P. Morgan, Bank of America, and Credit Suisse, according to sources. Demand for the deal allowed for a $160 million upsizing, while terms printed at the tight end of guidance. The fallen angel newspapers concern returned to market after nearly a three-year hiatus in an effort to pay down its highest-coupon debt obligations. Proceeds back a tender offer for up to $700 million of the $846 million outstanding of 11.5% secured notes due 2017. Under the terms of the tender, bondholders are offered 110.34 per note, a small premium to the upcoming first call price, at 108.625 in February. McClatchy is the third-largest newspaper publisher in the U.S. in circulation, with 30 daily newspapers and 50 non-dailies. Terms:

 

Issuer The McClatchy Company
Ratings B/B1
Amount $910 million
Issue secured notes (144A)
Coupon 9%
Price 100
Yield 9%
Spread T+737
FRN eq. L+732
Maturity Dec. 15, 2022
Call nc5
Trade Dec. 3, 2012
Settle Dec. 18, 2012
Joint Bookrunners JPM/BAML/CS
Co-leads
Co’s.
Px talk 9-9.25%
Notes upsized by $160 million

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