GCI - Gannett secures $1.045B debt refinancing

Gannett Holdings, a wholly owned subsidiary of Gannett (GCI) has priced a $1.045B Term Loan B due February 2026 to refinance the 11.5% term loan entered into for the acquisition of Gannett Media Corp. at L+700, with a 0.75% LIBOR floor.The new Term Loan B is expected to close early next week. The new Term Loan B will save 375 bps in annual interest, resulting in ~$90M in cash interest savings in 2021.The company is positioned to organically grow cash flows in 2021 and will be able to execute $100M-$125M in additional asset sales this year. The loan will amortize quarterly at a rate of 10% p.a. beginning September 30, 2021 and yield-to-maturity to 8.65%. Following these transactions, total debt outstanding will be $1.545B, includig $1.045B Term Loan B, $497.1M 6% senior secured convertible notes, and $3.3M of legacy Gannett Media Corp. 4.75% senior secured convertible notes.

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Gannett secures $1.045B debt refinancing