What was to have been $400 million in bond sales by newspaper giant (and TV group owner) Gannett Company expanded to a cool half billion bucks as the offerings were priced. The pricing wasn’t too shabby, either.
Instead of $200 million of senior notes due 2014, Gannett sold $250 million, carrying a coupon of 8.75%. The notes were priced at 98.465% of face value, so the yield to maturity worked out to 9.125%
Likewise, instead of $200 million of senior notes due 2017, Gannett sold $25 million, carrying a coupon of 9.375%. The notes were priced at 98.582% of face value, so the yield to maturity was 9.625%.
The new notes were sold only to qualified institutional buyers. Gannett said it will use the proceeds to reduce debt under its outstanding revolving credit facilities and term loan.