Gannett plans up to $550 million term loan at Libor plus 500 bps

By Sara Rosenberg

New York, Sept. 27 – Gannett Holdings LLC plans on getting an up to $550 million senior secured first-lien term loan placed with funds affiliated with Apollo Capital Management LP, according to an 8-K filed with the Securities and Exchange Commission on Monday.

Pricing on the term loan is expected to be Libor plus 500 basis points with a 0.5% Libor floor.

Security is substantially all of the assets of the company and the direct and indirect material domestic subsidiaries of the company.

Proceeds will be used with senior secured notes to refinance an existing term loan. The existing term loan currently has a balance of $925.7 million but an amortization payment of $26.1 million will be made on Sept. 30, bringing the total down to about $899 million.

Closing on the new term loan is contingent upon the successful offering of senior secured notes.

Pro forma first-lien net leverage will be 1.8x and pro forma net leverage will be 3.1x based on LTM pro forma June 30 adjusted EBITDA of $453 million.

Gannett is a McLean, Va.-based media and marketing solutions company.

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