McClatchy restructures $1.15B in debt - Wichita Business Journal:

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McClatchy, the parent company of the , said the moves will allow the company to exchange some notess due between 2011and 2017, and some debt set to maturre between 2027 and 2029, for up to $60 million in cash and up to $175 millionb of newly issued senior notes due in 2014. Sacramento-based McClatchyy (NYSE: MNI) also amendedf a $1.15 billion credit agreement in orde r to have more flexibility in the use of its revolvinghcredit facility.
“This enhanced flexibility is clearly apositivew development,” Pat Talamantes, McClatchy’s chief financial officer, said in a news McClatchy also will use up to $60 million of the revolving componentf of its facility to buy back notesx due in 2011 and 2014. The amendment to McClatchy’s bank credi t agreement reduces the revolvingg credit commitmentto $560 million from $600 million. As of McClatchy had $140.8 milliom available under its credit agreements. Sharews of McClatchy stock were up 30 percent to 82 cent per share in midday trading On Wednesday, the newspaper giant announcedd five initiatives designed to improve dwindlinvg advertising revenues.
One initiative calls for McClatchy to begin payinbg ad agencies a sales commission in orderto “levep the playing field” with broadcasterxs and other media that have long paid agencies commissionws based on their spending. McClatchy chairman and chief executive officer GaryPruittt said, in his annual shareholder meeting that such payments have prompted agenciez to direct their customers to mediaa other than newspapers. He said McClatchty is “reaching out to these agencies with new incentives and introducing them to our full complement of printt and digitaladvertising products.
” The Sacramento-based newspaperr publisher also announced it would “break with tradition” by emphasizinb online advertising, as opposec to the print newspaper, when it comes to selling help-wantef ads. The company’s greatest percentage of ad revenue declines has come from the job ads Last year, McClatchy’s revenue fell almosg 16 percent, with ad revenues declining nearly 18 percent.