Gannett Announces Debt Repayment & Refinancing Update
Gannett Co., Inc. (NYSE: GCI) has announced expected asset sales of approximately $13.0 million in the third quarter of 2024, with proceeds to be used for debt repayment. The company aims to reduce debt by $53 million year-to-date and remains on track to repay at least $110 million for the full year. While these sales and the closure of Reviewed.com will impact total revenue, they are not expected to materially affect Adjusted EBITDA.
Gannett also provided an update on its refinancing efforts, expecting to commence negotiations for the exchange of its 6.0% Senior Secured Convertible Notes due 2027 and 6.0% first lien notes due November 1, 2026. Preliminary results from these exchange offers are anticipated in October, with transactions expected to close later in the fall.
Gannett Co., Inc. (NYSE: GCI) ha annunciato che prevede vendite di asset per circa 13,0 milioni di dollari nel terzo trimestre del 2024, con i proventi da utilizzare per il rimborso del debito. L'azienda mira a ridurre il debito di 53 milioni di dollari da inizio anno e rimane in linea per rimborsare almeno 110 milioni di dollari per l'intero anno. Sebbene queste vendite e la chiusura di Reviewed.com influenzeranno il fatturato totale, non si prevede che abbiano un impatto materiale sull'EBITDA rettificato.
Gannett ha anche fornito un aggiornamento sui suoi sforzi di rifinanziamento, prevede di avviare negoziazioni per lo scambio dei suoi Note Convertibili Senior Garantiti al 6,0% in scadenza nel 2027 e delle note di primo diritto al 6,0% in scadenza il 1° novembre 2026. Si prevedono risultati preliminari da queste offerte di scambio a ottobre, con le transazioni che dovrebbero concludersi più avanti in autunno.
Gannett Co., Inc. (NYSE: GCI) ha anunciado que espera ventas de activos por aproximadamente 13,0 millones de dólares en el tercer trimestre de 2024, con los ingresos destinados al pago de deudas. La compañía tiene como objetivo reducir la deuda en 53 millones de dólares desde el inicio del año y sigue en camino de reembolsar al menos 110 millones de dólares durante todo el año. Si bien estas ventas y el cierre de Reviewed.com afectarán los ingresos totales, no se espera que impacten de manera significativa el EBITDA ajustado.
Gannett también proporcionó una actualización sobre sus esfuerzos de refinanciamiento, esperando iniciar negociaciones para el intercambio de sus Notas Convertibles Garantizadas Senior al 6,0% que vencen en 2027 y notas de primer gravamen al 6,0% que vencen el 1 de noviembre de 2026. Se anticipan resultados preliminares de estas ofertas de intercambio en octubre, con transacciones que se espera cierren más adelante en otoño.
Gannett Co., Inc. (NYSE: GCI)는 2024년 3분기에 약 1300만 달러의 자산 판매를 예상한다고 발표했으며, 수익의 대부분은 부채 상환에 사용될 예정입니다. 이 회사는 올해 시작된 이래 5300만 달러의 부채를 줄이는 것을 목표로 하고 있으며, 연간 최소 1억 1000만 달러를 상환할 계획입니다. 이러한 매각과 Reviewed.com의 폐쇄는 총 수익에 영향을 미치겠지만, 조정된 EBITDA에 실질적인 영향을 미치지 않을 것으로 예상됩니다.
또한 Gannett는 2027년에 만기가 도래하는 6.0%의 선순위 담보 전환사채와 2026년 11월 1일 만기가 도래하는 6.0%의 최초 담보 노트 교환을 위한 협상을 시작할 계획이라는 재정상환 노력에 대한 업데이트를 제공했습니다. 이러한 교환 제안의 초기 결과는 10월에 예상되며, 거래는 가을 시점에 마감될 것으로 보입니다.
Gannett Co., Inc. (NYSE: GCI) a annoncé qu'elle s'attend à des ventes d'actifs d'environ 13 millions de dollars au troisième trimestre 2024, les revenus étant destinés au remboursement de dettes. L'entreprise vise à réduire sa dette de 53 millions de dollars depuis le début de l'année et reste sur la bonne voie pour rembourser au moins 110 millions de dollars pour l'année complète. Bien que ces ventes et la fermeture de Reviewed.com aient un impact sur le chiffre d'affaires total, il n'est pas attendu qu'elles affectent de manière significative l'EBITDA ajusté.
Gannett a également fourni une mise à jour sur ses efforts de refinancement, s'attendant à commencer des négociations pour l'échange de ses Obligations Convertibles Senior Sécurisées à 6,0 % arrivant à échéance en 2027 et de ses obligations de premier rang à 6,0 % arrivant à échéance le 1er novembre 2026. Les résultats préliminaires de ces offres d'échange sont attendus en octobre, avec des transactions qui devraient se conclure plus tard à l'automne.
Gannett Co., Inc. (NYSE: GCI) hat angekündigt, dass voraussichtlich Vermögensverkäufe in Höhe von etwa 13,0 Millionen US-Dollar im dritten Quartal 2024 erfolgen werden, die Erlöse sollen zur Schuldenrückzahlung verwendet werden. Das Unternehmen zielt darauf ab, die Schulden bis zum Jahresende um 53 Millionen US-Dollar zu reduzieren und strebt an, im Gesamtjahr mindestens 110 Millionen US-Dollar zurückzuzahlen. Obwohl diese Verkäufe und die Schließung von Reviewed.com die Gesamteinnahmen beeinträchtigen werden, wird nicht erwartet, dass sie einen wesentlichen Einfluss auf das bereinigte EBITDA haben.
Gannett gab auch ein Update zu seinen Refinanzierungsbemühungen und plant, Verhandlungen über den Austausch seiner 6,0%-Senior-Secured-Convertible-Notes mit Fälligkeit 2027 und der 6,0%-First-Lien-Notes mit Fälligkeit am 1. November 2026 zu beginnen. Vorläufige Ergebnisse dieser Austauschangebote werden im Oktober erwartet, mit Transaktionen, die später im Herbst abgeschlossen werden sollen.
- Expected asset sales of $13.0 million in Q3 2024
- On track to repay at least $110 million in debt for the full year
- Debt reduction of $53 million year-to-date
- Asset sales not expected to materially impact Adjusted EBITDA
- Refinancing efforts progressing with negotiations for note exchanges
- Asset sales and closure of Reviewed.com will impact total revenue starting Q3 2024
Insights
Gannett's debt repayment and refinancing update reveals a strategic focus on deleveraging. The company's plan to repay
The planned exchange of convertible notes and first lien notes could potentially reduce interest expenses and extend debt maturities, providing more financial flexibility. While these moves are positive for long-term financial health, investors should closely monitor the impact on revenue growth and profitability in the coming quarters.
Gannett's asset optimization strategy aligns with industry trends of streamlining operations and focusing on core competencies. The media landscape continues to evolve rapidly and Gannett's moves suggest an adaptation to changing market dynamics. The company's emphasis on digital marketing solutions through LocaliQ and events through USA TODAY NETWORK Ventures indicates a shift towards higher-growth segments.
However, the impact of asset sales on revenue warrants careful observation. Investors should assess whether the trade-off between debt reduction and potential revenue loss will ultimately enhance shareholder value. The success of this strategy will largely depend on Gannett's ability to grow its remaining businesses and improve profitability in an increasingly digital media environment.
"With these most recent asset sales, we expect to reduce our debt by
The Company also provided an update on its refinancing efforts pursuant to the commitment letter announced last week. Specifically, the Company expects to announce details and commence negotiations later this month for the exchange of the Company’s
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, but not limited to, statements regarding our expectations, in terms of both amount and timing, with respect to debt repayment, the terms of our debt repayment, real estate and non-strategic asset sales and the use of proceeds from such sales, our revenues and Adjusted EBITDA, shareholder value, our refinancing efforts, the negotiations and exchange of our convertible notes and first lien notes, the results of such exchanges and timing of any related closings, our capital structure, our capital allocation, our strategy, and our ability to achieve our operating priorities. The Company makes no guarantees or assurances that sales of any of the real estate or other asset sales in negotiation will close. Words such as "expect(s)", "anticipate(s)", "continue(s)", "believe(s)", "will", "remain(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 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 risks and other factors detailed from time to time in the Company’s most recent Annual Report on Form 10-K, our quarterly reports on Form 10-Q, and our 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/20240905515492/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
How much debt does Gannett (GCI) expect to repay in 2024?
What is the value of Gannett's (GCI) expected asset sales in Q3 2024?
How will Gannett's (GCI) asset sales impact its Adjusted EBITDA?
What refinancing efforts is Gannett (GCI) pursuing in 2024?
