McClatchy Announces Final Results Of Debt Tender Offer At Par For 2022 Notes

SACRAMENTO, Calif., May 23, 2018 /PRNewswire/ -- The McClatchy Company (NYSE American-MNI) announced today the final results of its offer to purchase for cash up to $13 million of its 9.0% Senior Secured Notes due in 2022 (the "9.0% Notes") pursuant to the terms and conditions of the Offer to Purchase dated April 25, 2018 (the "Offer"). Based on the results provided by the trustee of the 9.0% Notes, $0.5 million aggregate principal amount of the 9.0% Notes were tendered prior to the Offer's expiration at 5 p.m., Eastern time on Tuesday, May 22, 2018.

As previously announced, and in compliance with the terms of the indenture for the 9.0% Notes, McClatchy was required to offer to purchase for cash up to $13 million of the outstanding 9.0% Notes at par as a result of selling The State building and surrounding land in Columbia, South Carolina.

The Columbia building and land has been simultaneously leased back by The State. In accordance with the indenture on the notes maturing in 2027 and 2029, leaseback transactions are considered asset sales and proceeds equal to the net present value of the attributable debt is required to be repurchased in publicly traded bonds within 90 days of entering into the lease. On May 15, 2018, consent from a majority of the holders of the unsecured notes maturing 2027 and 2029 was received allowing the company to omit the requirement to repurchase publicly traded bonds in accordance with the indenture on the notes maturing in 2027 and 2029.

Elaine Lintecum, McClatchy's chief financial officer, said, "These 9.0% Notes continue to trade at a premium and similar to our offers last year, we are not surprised that a majority of the holders declined our offer."

About McClatchy

McClatchy operates 30 media companies in 14 states, providing each of its communities with strong independent local journalism in the public interest and advertising services in a wide array of digital and print formats. McClatchy is a publisher of iconic brands including the Miami Herald, The Kansas City Star, The Sacramento Bee, The Charlotte Observer, The (Raleigh) News & Observer, and the (Fort Worth) Star-Telegram. McClatchy is headquartered in Sacramento, Calif., and listed on the New York Stock Exchange American under the symbol MNI. #ReadLocal

Additional Information

Statements in this press release regarding future financial and operating results, including our strategies for success and their effects, our real estate monetization efforts and the repurchase of outstanding notes, revenues, and management's efforts with respect to cost reduction efforts and efficiencies, cash expenses, revenues, adjusted EBITDA, debt levels, interest costs and creation of shareholder value as well as future opportunities for the company and any other statements about management's future expectations, beliefs, goals, plans or prospects constitute forward-looking statements  as defined in the Private Securities Litigation Reform Act of 1995. Any statements that are not statements of historical fact (including statements containing the words "believes," "plans," "anticipates," "expects," "estimates" and similar expressions) should also be considered to be forward-looking statements. There are a number of important risks and uncertainties that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including: McClatchy may not generate cash from operations, or otherwise, necessary to reduce debt or meet debt covenants as expected; we may not be successful in reducing debt whether through tenders offers, open market repurchase programs or other negotiated transactions; including sales of real estate properties may not close as anticipated or result in cash distributions in the amount or timing anticipated; McClatchy may not successfully implement audience strategies designed to increase audience revenues and may experience decreased audience volumes or subscriptions; McClatchy may experience diminished revenues from advertising; McClatchy may not achieve its expense reduction targets including efforts related to legacy expense initiatives or may do harm to its operations in attempting to achieve such targets; McClatchy's operations have been, and will likely continue to be, adversely affected by competition, including competition from internet publishing and advertising platforms; increases in the cost of newsprint; bankruptcies or financial strain of its major advertising customers; litigation or any potential litigation; geo-political uncertainties including the risk of war; changes in printing and distribution costs from anticipated levels, including changes in postal rates or agreements; changes in interest rates; changes in pension assets and liabilities; changes in factors that impact pension contribution requirements, including, without limitation, the value of the company-owned real property that McClatchy has contributed to its pension plan; increased consolidation among major retailers in our markets or other events depressing the level of advertising; our inability to negotiate and obtain favorable terms under collective bargaining agreements with unions; competitive action by other companies; an inability to fully implement and execute its share repurchase plan; and other factors, many of which are beyond our control; the Company may not be able to successfully refinance its 9.0% Senior Secured Notes due 2022; the company may not be able to consummate the debt refinancing transaction with Chatham as well as the other risks detailed from time to time in the company's publicly filed documents, including the company's Annual Report on Form 10-K for the year ended Dec. 31, 2017, filed with the U.S. Securities and Exchange Commission. McClatchy disclaims any intention and assumes no obligation to update the forward-looking information contained in this release.

SOURCE McClatchy

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