McClatchy amends and restates credit facility to extend term to 2015

By Jennifer Chiou

New York, June 25 - McClatchy Co. entered into an amendment and restatement of its credit agreement on Friday, extending the maturity of the commitments to Jan. 31, 2015, according to an 8-K filed with the Securities and Exchange Commission.

Bank of America, NA acted as administrative agent with JPMorgan Chase Bank, NA as syndication agent.

The filing noted that the commitments of the lenders who chose not to extend the term of their commitments were reduced to zero, and any debt and fees was paid down.

The company said that commitments under the credit facility will only be available for standby letters of credit in an aggregate amount of up to $36.1 million. The company can request letters of credit until Jan. 24, 2015.

The 8-K added that the amendment also removed the requirement for mandatory prepayments of loans with any excess cash, modified the limitation on the company's ability to declare and pay cash dividends or repurchase equity interests by permitting those payments or repurchases as long as they are permitted under the indenture for the 11½% senior secured notes due Feb. 15, 2017, and reduced the minimum liquidity covenant to maintenance of no less than $10 million of cash and cash equivalents as of the end of each fiscal quarter.

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

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