McClatchy to continue paying down debt, has options for 2011 notes

By Sara Rosenberg

New York, Dec. 8 - McClatchy Co. plans to continue focusing on debt repayment in the coming year and is looking at various options regarding its $18 million of bonds due in June 2011, company officials said at the UBS Global Media & Communications Conference on Wednesday.

At the end of its fiscal year, the company expects to have $1.775 billion of outstanding debt as all outstanding term loan debt is anticipated to be repaid by year-end.

The company plans on receiving a dividend this month in the range of $20 million to $25 million from Classified Ventures, an internet company in which it owns a 25.6% interest. This dividend would be used to pay down debt.

Over the course of 2010, the company's debt repayments would total $174 million and over the past three years, debt has been reduced by over $1 billion.

The company's leverage ratio is expected to be about 4.6 times cash flow at year-end, down from 5.3 times at the end of 2009.

McClatchy is a Sacramento, Calif.-based newspaper company and an operator of local websites in each of its markets.

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