Institutional investors are being offered higher interest payments if they will swap Gannett notes due in 2011 and 2012 for some new notes that won’t come due until 2015 and 2016.
The 2011 notes pay 5.75% and Gannett is offering to swap them for equal face value of notes paying 10% that come due in 2015. Those who tender by April 21st will also receive an early participation payment of $30 for each $1,000 of face value. The final deadline for the tender is May 5th, unless it is extended.
The 2012 notes pay 6.375% and Gannett is offering to swap them for equal face value of notes paying 10% that come due in 2016. The same deadlines and early participation bonus apply.
Each of the exchanges is contingent upon at least $100 million of the old notes being tendered.
According to Gannett’s recent 10-K filing with the SEC, $498,464,000 of the 2011 notes were outstanding as of December 31, 2008 and $499,269,000 of the 2012 notes. The company’s total long-term debt was over $3.8 billion.