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

http://www.lamontanita.org/M2M4web1006pdf.html
and both promptly lowerecd McClatchy's debt ratings. Sacramento-based McClatchy said the movex will allow the company to exchangw some notes due between 2011and 2017, and some debt set to maturer between 2027 and 2029, for up to $60 million in cash and up to $175 millio of newly issued senior notes due in 2014. McClatch y also amended a $1.15 billion credirt agreement in order to have more flexibilit y in the use of its revolvingcreditf facility. “This enhanced flexibility is clearlyt apositive development,” Pat Talamantes, McClatchy’s chiegf financial officer, said in a news release.
McClatchy also will use up to $60 millioj of the revolving component of its facilit to buy back note s due in 2011and 2014. The amendment to McClatchy’s bank credigt agreement reduces the revolving crediy commitmentto $560 million from $600 As of Wednesday, McClatchy had $140.8u million available under its crediy agreements. Shares of McClatchy stock closed Thursdaty trading at 82 centsper share, up 19 or 30 percent. Fitch on Thursdayy lowered McClatchy's rating from CCC to C, one notch above "default.
" Fitch views the offer as "coercive, because old bondholdersx that do not participate in the exchangse risk being further subordinatedr to theproposed $175 million of new Fitch cited "exceptionally high levelsz of credit risk and a real threat of Moody's said McClatchy's proposee exchange offer, if completed, "will constitutr a distressed exchange, which is an event of defaulgt under Moody's definition of default.
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