McClatchy Newspapers Secures $1.435 Billion Credit Facility

McClatchy Newspapers Inc., a leading American media company, has successfully arranged a massive $1.435 billion credit facility to support its acquisition of Cowles Media Inc. The deal was orchestrated by Salomon Smith Barney and Bank of America, with a team of managing agents and co-agents from prominent banks worldwide. This strategic move will enable McClatchy Newspapers to solidify its position in the industry and expand its reach through the acquisition.

Key Takeaways:

• The credit facility, arranged by Salomon Smith Barney and Bank of America, comprises a seven-year $200 million revolver, a seven-year $735 million A-term loan, and a 9.5-year $500 million B-term loan.
• The deal involves a total of 20 managing agents and co-agents from prominent banks worldwide, including Bank of Montreal, Bank of Tokyo-Mitsubishi, and Dresdner Bank.
• The pricing for the facility is based on a grid tied to McClatchy Newspapers' leverage ratio, with initial pricing set at Libor plus 125 basis points on the revolver and A loan, and Libor plus 175 on the B loan.
• The proceeds from the deal will be used to back McClatchy Newspapers' acquisition of Cowles Media Inc.
• McClatchy Newspapers' acquisition of Cowles Media Inc. is a significant strategic move, further solidifying its position in the industry.
• The credit facility arrangement highlights the company's ability to secure large-scale financing for its growth initiatives.

Statistics:

• $1.435 billion: Total value of the credit facility arranged by Salomon Smith Barney and Bank of America.
• $200 million: Amount of the seven-year revolver.
• $735 million: Amount of the seven-year A-term loan.
• $500 million: Amount of the 9.5-year B-term loan.
• 20: Number of managing agents and co-agents involved in the deal.
• 7 years: Tenor of the revolver and A-term loan.
• 9.5 years: Tenor of the B-term loan.

Sources:

• Salomon Smith Barney
• Bank of America
• McClatchy Newspapers Inc.