Gannett Co. announced that Gannett Holdings LLC (the “Borrower”), a wholly-owned subsidiary of the Company, has entered into a five-year senior secured term loan facility in an aggregate principal amount of $516 million (the “Credit Facility”) on October 15, 2021. The proceeds of the Credit Facility, together with the net proceeds from private offering of $400 million aggregate principal amount of 6.00% first lien notes due 2026 (the “Senior Notes”), were applied towards the full repayment of the existing term loan. The sale of the Senior Notes also closed on October 15, 2021.

Loans under the Credit Facility bear interest at a per annum rate equal to LIBOR plus a margin of 5.00% with a floor of 50 basis points The Credit Facility contains usual and customary covenants for credit facilities of this type that restrict, among other things, our ability to incur debt, grant liens, sell assets, make investments and pay dividends, in each case with customary exceptions including an exception that permits dividends and repurchases of outstanding junior debt or equity in (i) an amount of up to $25 million per fiscal quarter if the ratio of debt secured on an equal basis with the Credit Facility to EBITDA of the Company and its restricted subsidiaries (the “First Lien Net Leverage Ratio”) for such fiscal quarter is equal to or less than 2.00 to 1.00, (ii) an amount of up to $50 million per fiscal quarter if the First Lien Net Leverage Ratio for such fiscal quarter is equal to or less than 1.50 to 1.00 and (iii) an unlimited amount if First Lien Net Leverage Ratio for such fiscal quarter is equal to or less than 1.00 to 1.00. All obligations under the Credit Facility are secured by all or substantially all of the assets of the Company and the wholly-owned domestic subsidiaries of the Company (the “Guarantors”). The obligations of the Borrower under the Credit Facility are guaranteed on a senior secured basis by the Company and the Guarantors.

"This refinancing reduces our cost of capital by nearly 200 basis points, saving significant interest expense, while also improving upon the terms of our prior credit facility entered into in February 2021,” said Michael Reed, Gannett Chairman and Chief Executive Officer. "Since the acquisition of legacy Gannett in November 2019, we have paid down $379 million of debt and reduced our cost of capital by 570 basis points. The Company expects to continue to optimize its overall capital structure and aggressively pay down debt, which will continue to reduce our annual interest expense and overall leverage.”