GCI

Gannett reduces debt by $53 million in 2024

Gannett Co., Inc. has announced significant developments in its debt repayment and refinancing efforts. The company expects to have sold approximately $13.0 million in real estate and non-strategic asset sales from the beginning of the third quarter through the close of business on September 9, 2024. These proceeds will be used to repay approximately $13.0 million of the company's five-year senior secured term loan facility.

Year-to-date, Gannett has reduced its debt by $53 million, and it aims to repay at least $110 million for the full year. The company plans to continue optimizing its real estate and non-strategic asset portfolio to further accelerate its debt reduction plan.

In terms of the impact on the company's financials, the sale of certain businesses and the announced closure of reviewed.com are expected to impact total revenue starting in the third quarter of 2024. However, they are not expected to materially impact adjusted EBITDA.

Gannett also provided an update on its refinancing efforts, stating that it 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. Preliminary results from these exchange offers are anticipated to be shared in October, with the transactions expected to close later in the fall.

These strategic actions to improve Gannett's capital structure are aimed at unlocking additional value for its shareholders.

Gannett Co., Inc. (NYSE: GCI) is a diversified media company with a portfolio of trusted media brands, including the USA Today Network and Newsquest. The company's digital marketing solutions brand, LocalIQ, and its events division, USA Today Network Ventures, also play a significant role in its operations. Following these announcements, the company's shares moved 0.2%, and are now trading at a price of $4.88. If you want to know more, read the company's complete 8-K report here.

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