Gannett Announces Debt Repayment & Refinancing Update
05 September 2024 - 9:30PM
Business Wire
Gannett Co., Inc. ("Gannett", "we", "us", "our", or the
"Company") (NYSE: GCI) today announced that from the beginning of
the third quarter through the close of business on September 9,
2024, the Company expects to have sold approximately $13.0 million
in real estate and non-strategic asset sales, including the
proceeds from the sale of certain businesses. Proceeds from the
asset sales are expected to be used to repay approximately $13.0
million of our five-year senior secured term loan facility.
"With these most recent asset sales, we expect to reduce our
debt by $53 million year-to-date, and we believe we remain on track
to repay at least $110 million for the full year. We expect to
continue optimizing our real estate and non-strategic asset
portfolio to further accelerate our debt reduction plan. While the
sale of these businesses and the announced closure of Reviewed.com
will impact total revenue starting in the third quarter of 2024,
they are not expected to materially impact Adjusted EBITDA. Debt
repayment remains a high priority, and we believe that our
strategic actions to improve our capital structure will continue to
unlock additional value for our shareholders," said Michael Reed,
Gannett Chairman and Chief Executive Officer.
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
6.0% Senior Secured Convertible Notes due 2027 and its 6.0% first
lien notes due November 1, 2026. The Company expects to share
preliminary results from these exchange offers in October, and we
anticipate closing these transactions later this fall.
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 USA TODAY NETWORK, comprised of
the national publication, USA TODAY, and local media organizations
in the United States, and Newsquest, a wholly-owned subsidiary
operating in the United Kingdom. Our digital marketing solutions
brand, LocaliQ, uses innovation and software to enable small and
medium-sized businesses to grow, and USA TODAY NETWORK Ventures,
our events division, creates impactful consumer engagements,
promotions, and races.
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.
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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
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