Gannett Commences Exchange Offer and Consent Solicitation
Gannett Co., Inc. (NYSE: GCI) has announced an exchange offer and consent solicitation for its outstanding 6.000% Senior Secured Notes due 2026. Eligible holders can exchange their notes for either first lien term loans with a 1.5% upfront fee or cash. The exchange offer includes an early participation premium for holders who tender their notes by October 10, 2024.
This exchange offer is part of Gannett's broader debt refinancing strategy, which includes a new $900 million senior secured credit facility with Apollo Funds. The company also plans to repurchase up to 50% of its outstanding 6.000% Senior Secured Convertible Notes due 2027 and exchange another 50% for new notes due 2031.
The refinancing aims to restructure Gannett's debt and improve its financial position. The company describes itself as a diversified media company with a focus on empowering local communities through its portfolio of trusted media brands, including USA TODAY NETWORK and Newsquest.
Gannett Co., Inc. (NYSE: GCI) ha annunciato un offerta di scambio e una richiesta di consenso per le sue note senior garantite con scadenza nel 2026 e un rendimento del 6.000%. I titolari idonei possono scambiare le loro note per prestiti a termine di primo grado con una commissione anticipata dell'1,5% oppure denaro contante. L'offerta di scambio include un premio per partecipazione anticipata per i titolari che presentano le loro note entro il 10 ottobre 2024.
Questa offerta di scambio fa parte della più ampia strategia di rifinanziamento del debito di Gannett, che comprende una nuova linea di credito senior garantita da 900 milioni di dollari con Apollo Funds. L'azienda prevede inoltre di riacquistare fino al 50% delle sue note senior garantite convertibili con scadenza nel 2027 e di scambiare un altro 50% per nuove note con scadenza nel 2031.
Il rifinanziamento mira a ristrutturare il debito di Gannett e migliorare la sua posizione finanziaria. L'azienda si descrive come una società media diversificata con un focus sull'empowerment delle comunità locali attraverso il proprio portafoglio di marchi media affidabili, tra cui USA TODAY NETWORK e Newsquest.
Gannett Co., Inc. (NYSE: GCI) ha anunciado una oferta de intercambio y solicitud de consentimiento para sus notas senior garantizadas con un rendimiento del 6.000% que vencen en 2026. Los tenedores elegibles pueden intercambiar sus notas por préstamos a término de primer grado con una tarifa inicial del 1.5% o efectivo. La oferta de intercambio incluye un premio por participación anticipada para los tenedores que entreguen sus notas antes del 10 de octubre de 2024.
Esta oferta de intercambio es parte de la estrategia de refinanciamiento de deuda más amplia de Gannett, que incluye una nueva facilidad de crédito senior garantizada de 900 millones de dólares con Apollo Funds. La empresa también planea recomprar hasta el 50% de sus notas senior garantizadas convertibles que vencen en 2027 y cambiar otro 50% por nuevas notas que vencerán en 2031.
El refinanciamiento tiene como objetivo reestructurar la deuda de Gannett y mejorar su posición financiera. La empresa se describe a sí misma como una compañía de medios diversificada con un enfoque en empoderar a las comunidades locales a través de su portafolio de marcas de medios de confianza, incluyendo USA TODAY NETWORK y Newsquest.
Gannett Co., Inc. (NYSE: GCI)는 2026년 만기인 6.000% 고급 담보 노트에 대한 교환 제안 및 동의 요청을 발표했습니다. 적격 보유자는 노트를 1.5%의 초기 수수료가 있는 첫 번째 담보 대출 또는 현금으로 교환할 수 있습니다. 교환 제안에는 2024년 10월 10일까지 노트를 제출하는 보유자를 위한 조기 참여 보너스가 포함되어 있습니다.
이번 교환 제안은 Gannett의 더 넓은 부채 재조정 전략의 일환으로, Apollo Funds와 함께하는 새로운 9억 달러의 선순위 담보 신용 한도를 포함합니다. 이 회사는 또한 2027년 만기인 6.000% 고급 담보 전환 노트의 최대 50%를 재구매하고, 나머지 50%는 2031년 만기 노트로 교환할 계획입니다.
재조정은 Gannett의 부채를 구조조정하고 재정 상태를 개선하는 것을 목표로 합니다. 이 회사는 USA TODAY NETWORK 및 Newsquest를 포함한 신뢰할 수 있는 미디어 브랜드 포트폴리오를 통해 지역 사회를 강화하는 데 중점을 둔 다양한 미디어 회사로 자신을 설명합니다.
Gannett Co., Inc. (NYSE: GCI) a annoncé une offre d'échange et une demande de consentement pour ses obligations senior sécurisées à 6,000% arrivant à échéance en 2026. Les détenteurs éligibles peuvent échanger leurs obligations contre des prêts à terme de premier rang avec des frais initiaux de 1,5% ou de l'argent. L'offre d'échange comprend une prime de participation anticipée pour les détenteurs qui remettent leurs obligations avant le 10 octobre 2024.
Cette offre d'échange fait partie de la stratégie globale de refinancement de la dette de Gannett, qui inclut un nouveau facilité de crédit senior garantie de 900 millions de dollars avec Apollo Funds. L'entreprise prévoit également de racheter jusqu'à 50% de ses obligations senior garanties convertibles arrivant à échéance en 2027 et d'échanger 50% supplémentaires contre de nouvelles obligations arrivant à échéance en 2031.
Le refinancement vise à restructurer la dette de Gannett et à améliorer sa situation financière. L'entreprise se décrit comme une société de médias diversifiée, axée sur l'autonomisation des communautés locales à travers son portefeuille de marques de médias de confiance, y compris USA TODAY NETWORK et Newsquest.
Gannett Co., Inc. (NYSE: GCI) hat ein Tauschangebot und eine Zustimmungsanfrage für seine ausstehenden 6,000% senior gesicherten Anleihen mit Fälligkeit 2026 angekündigt. Berechtigte Inhaber können ihre Anleihen gegen erstklassige Terminkredite mit einer anfänglichen Gebühr von 1,5% oder Bargeld tauschen. Das Tauschangebot beinhaltet einen Frühteilnehmerbonus für Inhaber, die ihre Anleihen bis zum 10. Oktober 2024 einreichen.
Dieses Tauschangebot ist Teil von Gannetts umfassender Schuldenrefinanzierungsstrategie, die eine neue senior gesicherte Kreditfazilität über 900 Millionen USD mit Apollo Funds umfasst. Das Unternehmen plant außerdem, bis zu 50% seiner ausstehenden 6,000% senior gesicherten wandelbaren Anleihen mit Fälligkeit 2027 zurückzukaufen und weitere 50% gegen neue Anleihen mit Fälligkeit 2031 umzutauschen.
Die Refinanzierung zielt darauf ab, Gannetts Schulden umzustrukturieren und die finanzielle Situation zu verbessern. Das Unternehmen beschreibt sich selbst als diversifiziertes Medienunternehmen, das sich darauf konzentriert, lokale Gemeinschaften durch sein Portfolio von vertrauenswürdigen Medienmarken, einschließlich des USA TODAY NETWORK und Newsquest, zu stärken.
- Opportunity for noteholders to exchange for potentially more favorable terms (term loans or cash)
- Early participation premium incentivizes quick action from noteholders
- New $900 million senior secured credit facility with Apollo Funds
- Potential improvement of debt structure through refinancing strategy
- Complex refinancing process may indicate financial challenges
- Repurchase of convertible notes at a premium ($1,110 per $1,000) could be costly
- Potential dilution for shareholders if new convertible notes are issued
Insights
Gannett's debt refinancing initiative, including the exchange offer for its 6.000% Senior Secured Notes due 2026, is a significant financial maneuver aimed at restructuring the company's debt profile. The offer provides noteholders with options to exchange for either new term loans or cash, potentially improving Gannett's debt structure and liquidity position.
Key points to consider:
- The exchange offer could reduce the outstanding
$278.54 million in notes, potentially lowering interest expenses. - The new
$900 million senior secured credit facility with Apollo Funds indicates strong institutional backing. - Plans to repurchase up to
50% of the 2027 Convertible Notes at a premium suggest a proactive approach to managing future obligations.
While this refinancing may provide short-term financial flexibility, investors should closely monitor the impact on Gannett's balance sheet and future cash flows. The success of this initiative will be important for the company's financial health and strategic positioning in the evolving media landscape.
The exchange offer and consent solicitation present several legal considerations:
- The proposed amendments to the indenture, if approved, would significantly alter noteholders' rights by eliminating most restrictive covenants and certain default provisions.
- The consent solicitation is structured to be binding on all noteholders if the requisite consents are obtained, potentially affecting non-participating holders.
- The exchange offer's structure, with different consideration options and an early participation premium, raises questions of equitable treatment among noteholders.
Investors should carefully review the full terms in the confidential offer document. The company's ability to extend, terminate, or modify the offer at its discretion adds complexity to the legal landscape. Regulatory compliance, particularly with securities laws governing such exchanges, will be important for Gannett to navigate successfully.
The following table sets forth the Exchange Consideration, Early Participation Premium and Total Consideration for Early Participation with respect to the exchange of the Notes:
Notes to be
|
CUSIP/ISIN |
Aggregate Principal
|
Exchange
|
Early Participation
|
Total Consideration
|
|||||
36474G AA3 /
|
||||||||||
|
|
Loan Option: |
Loan Option: |
Loan Option: |
||||||
|
|
|
or |
or |
or |
|||||
|
|
|
Cash Option: |
Cash Option: |
Cash Option: |
| _________________________________________ | ||
(1) |
The Total Consideration for Early Participation or Exchange Consideration, as applicable, will be paid for each |
|
(2) |
Each Term Loan dollar figure represents the principal amount of such Term Loan being exchanged for each |
|
(3) |
The Total Consideration for Early Participation is equal to the Exchange Consideration plus the Early Participation Premium. |
|
The Term Loans will be guaranteed on a senior secured basis by the Company, the direct parent of Gannett Holdings, and certain of the Company’s present and future subsidiaries.
Concurrently with the Exchange Offer, Gannett and Gannett Holdings are soliciting consents (the “Consent Solicitation”) to (i) eliminate substantially all of the restrictive covenants contained in the Indenture governing the Notes, dated as of October 15, 2021 (the “Indenture”), (ii) eliminate certain of the default provisions contained in the Indenture and (iii) amend certain related provisions to conform for such eliminations (collectively, the “Proposed Amendments”). Holders of Notes may not tender Notes without delivering the related Consents, and holders of Notes that tender Notes prior to the Expiration Time (as defined below) will be deemed automatically to have delivered a consent to the Proposed Amendments. The Exchange Offer is not conditioned on receipt of the requisite consents to the Proposed Amendments in the Consent Solicitation.
The Exchange Offer and Consent Solicitation are being made pursuant to the terms and subject to the conditions set forth in a confidential offer to exchange and consent solicitation statement dated September 26, 2024 (the “Offer to Exchange and Consent Solicitation Statement”).
We may extend or terminate the Exchange Offer and/or the Consent Solicitation, in our sole and absolute discretion, and may otherwise amend or modify the Exchange Offer and/or the Consent Solicitation in any respect, at any time and for any reason, including based on the acceptance rate and outcome of the Exchange Offer or if any of the conditions to the Exchange Offer are not satisfied.
Holders who validly tender (and do not validly withdraw) their Notes at or prior to 5:00 p.m.,
Notes tendered for exchange in the Exchange Offer may be withdrawn and the related consents may be revoked at any time at or prior to the Early Tender Time, but not thereafter.
The Offer to Exchange and Consent Solicitation Statement will be distributed only to holders of the Notes. The complete terms and conditions of the Exchange Offer and the Consent Solicitation are described in the Offer to Exchange and Consent Solicitation Statement, a copy of which may be obtained by contacting Epiq Corporate Restructuring, LLC (the “Exchange Agent”), the exchange agent and information agent in connection with the Exchange Offer and the Consent Solicitation, at (646) 362-6336 or Registration@epiqglobal.com, with reference to “Gannett” in the subject line.
This press release does not constitute an offer to sell or purchase, or a solicitation of an offer to sell or purchase, or the solicitation of tenders or consents with respect to, any security. No offer, solicitation, purchase or sale will be made in any jurisdiction in which such an offer, solicitation, or sale would be unlawful. The Exchange Offer and Consent Solicitation are being made solely pursuant to the Offer to Exchange and Consent Solicitation Statement and only to such persons and in such jurisdictions as is permitted under applicable law.
Other Refinancing Transactions
The Exchange Offer and Consent Solicitation are part of the debt refinancing transactions that Gannett is undertaking pursuant to its previously announced commitment letter (the “Commitment Letter”). The Commitment Letter provides for a new senior secured credit facility (the “Term Loan Facility”) with funds managed by affiliates of Apollo (NYSE:APO) (“Apollo Funds”) of up to
About Gannett
Gannett Co., Inc. (NYSE: GCI) is a diversified media company with expansive reach at the national and local level dedicated to empowering and enriching communities. We seek to inspire, inform, and connect audiences as a sustainable, growth focused media and digital marketing solutions company. We endeavor to deliver essential content, marketing solutions, and experiences for curated audiences, advertisers, consumers, and stakeholders by leveraging our diverse teams and suite of products to enrich the local communities and businesses we serve. Our current portfolio of trusted media brands includes the
Our website address is www.gannett.com. We use our website as a channel of distribution for important company information, including press releases and other news and presentations, which is accessible on the Investor Relations and News and Events subpages of our website.
Cautionary Statement Regarding Forward-Looking Statements
Certain items in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, among others, statements regarding our ability to refinance our debt facilities, maturity of debt, note repurchases, exchanges and redemptions, uses of proceeds, expectations (including timing) with respect to the Exchange Offer and Consents Solicitation, availability of future financing and interest expense. Words such as “expect(s)”, “intend”, “will”, “believe(s)”, “anticipate(s)” and similar expressions are intended to identify such forward-looking statements. These statements are based on management’s current expectations and beliefs and are subject to a number of risks and uncertainties. These and other risks and uncertainties could cause actual results to differ materially from those described in the forward-looking statements, many of which are beyond our control. The Company can give no assurance its expectations regarding the Exchange Offer and Consents Solicitation or any other proposed financing or liability management transactions, or otherwise, will be attained. Accordingly, you should not place undue reliance on any forward-looking statements contained in this press release. For a discussion of some of the risks and important factors that could cause actual results to differ from such forward-looking statements, see the section entitled “Risk Factors” in the Offer to Exchange and Consent Solicitation Statement and the risks and other factors detailed in the Company’s 2023 Annual Report on Form 10-K and from time to time in other filings with the Securities and Exchange Commission. Furthermore, new risks and uncertainties emerge from time to time, and it is not possible for the Company to predict or assess the impact of every factor that may cause its actual results to differ from those contained in any forward-looking statements. Such forward-looking statements speak only as of the date of this press release. Except to the extent required by law, the Company expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with regard thereto or change in events, conditions or circumstances on which any statement is based.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240926916667/en/
For investor inquiries, contact:
Matt Esposito
Investor Relations
703-854-3000
investors@gannett.com
For media inquiries, contact:
Lark-Marie Anton
Corporate Communications
646-906-4087
lark@gannett.com
Source: Gannett Co., Inc.
FAQ
What is Gannett (GCI) offering in its exchange offer for the 2026 Senior Secured Notes?
When is the early tender deadline for Gannett's (GCI) exchange offer?
What is the size of the new senior secured credit facility Gannett (GCI) is arranging with Apollo Funds?
How much of Gannett's (GCI) 2027 Convertible Notes does the company plan to repurchase?
