Gannett, Gatehouse talking merger

Makes me glad Gannett no longer owns my paper ...

 

It sounds high when you're buying a business that doesn't make (much) money. On the other hand, I saw a Reuters story about what McClatchy did 10 years ago to try to solve its debt problem:
- U.S. publisher, McClatchy Co (MNI.N), is changing key aspects of its debt agreements in a bid to stay afloat as plunging advertising revenue endangers its financial health.

McClatchy plans to exchange $1.15 billion worth of existing debt for cash and new debt.

The new debt comes with a higher interest rate of 15.75 percent versus about 5.0 percent to 7.0 percent on existing obligations, but allows the publisher to pay it off several years later.

 

In other words McClatchy can't pay off or roll over the existing debt. So they have to pay exorbitant rates until they go in Chapter 11.

 

Which newspaper?

 

Nicely played.

 

Talk about timing the market

https://nypost.com/2019/08/06/new-m...IEXyLrx0x8-qEaMFfE1sJ1HuUxLkY75QgxYKZGsS559W8

 

Welp, now USA Today headquarters being evacuated. A man with a weapon at the Gannett building in McLean, Va.

 

Gatehouse stock had been about $10 a share even with a dividend of a $1.52 a share. Gatehouse they would cut the dividend to .76 cents a share. So the stock has dropped to $7.50 am has the last couple of days. At >76 cents a share in dividends it will take 10 years to cover the stock if you buy it at $7.50.

Many are looking at the term so the Apollo loan and thinking Gatehouse will not make it to the end of the five year term on the loan. I don't. That's why I have shorted the stock.

 

LOL. I should have written not-for-profit.

 

They’ve started layoffs already?

 

Someone smuggled in a pica pole and all the kids freaked out.