Gannett repays some term loan and notes with asset sale proceeds

By Sara Rosenberg

New York, Aug. 10 – Gannett Co. Inc. repaid amounts under its five-year senior secured term loan with $28.4 million of proceeds from real estate sales completed in the third quarter, according to a news release.

The company also used about $16 million of proceeds from the real estate sales to repurchase around $18.5 million of 6% first lien notes due November 1, 2026 at a discount to par.

“As part of our long-term strategy, debt repayment remains a high priority, and we continue to make measurable progress each quarter, evidenced again by repaying $46.9 million of debt subsequent to the second quarter of 2023,” said Michael Reed, chairman and chief executive officer, in the release.

“Year-to-date, we have repaid approximately $100 million of debt, and we expect to exceed our initial projections by repaying at least $130 million of debt by the end of 2023. We believe we are well positioned to further improve our overall capital structure in the latter half of the year, while maintaining a healthy balance sheet and strong liquidity position. Our recent debt repayments, combined with the real estate assets still in the sales pipeline, have placed us in a favorable position to achieve a first lien net leverage well below 2.0x by the end of the year,” Reed added.

Gannett is a McLean, Va.-based subscription-led and digitally-focused media and marketing solutions company.

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