Gannett Reduces Debt Load; Sees Improving Revenue Trends To Drive Strong Q4 Results

(RTTNews) - Gannett Co., Inc. (GCI) said Thursday that from the beginning of the fourth quarter through the end of this week, it will have repaid about $647 million of its 11.5 percent term loan, reducing the outstanding balance to $1.082 billion.

After accounting for recent real estate sales, Gannett's total debt outstanding is $1.582 billion. This includes the $1.082 billion outstanding term loan, $497.1 million 6 percent senior secured convertible notes, and $3.3 million of legacy Gannett 4.75 percent senior secured convertible notes.

"The actions we have taken to date have lowered our interest payments by $45 million annually. Our asset sales have accelerated our debt repayment expectations and have increased our confidence in our ability to refinance the remaining term loan during the first half of 2021," said Michael Reed, Gannett Chairman and Chief Executive Officer.

Further, Gannett said it expects improving revenue trends to drive strong fourth quarter results. The company expects its real estate sales pipeline and amortization payments to further reduce its debt by about $100 million by early 2021.