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McClatchy amends loan, permitting revolver draws for note repurchases
By Sara Rosenberg
New York, May 21 - McClatchy Co. amended its credit facility, allowing for borrowings under the revolver to be used to repurchase up to $60 million of 7.125% notes due June 1, 2011 or 4.625% notes due Nov. 1, 2014, according to a news release.
The cash may also be used in connection with a debt exchange offer so long as any new notes issued in an offer mature no earlier than July 1, 2014.
The amendment also reduces the revolver size to $560 million from $600 million in increments through Dec. 31, and then to $550 million through June 30, 2010.
In addition, pricing on the facility was increased to a range of Libor plus 325 basis points to 475 bps based on leverage. Currently, pricing is Libor plus 400 bps - an increase of 50 bps from previous pricing - since leverage is 5.90 to 1.00.
Furthermore, the amendment changed the requirements for mandatory prepayments from certain sources of cash and further limited the payment of dividends, repurchases of stock and the ability to retire bonds that come due after 2011.
The amendment was completed on May 20.
As of the amendment date, the company had $140.8 million available under its credit facilities.
McClatchy is a Sacramento, Calif.-based newspaper company.
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