McClatchy Begins Private Debt Exchange Offer

McClatchy Co. started a $1.15 billion private debt exchange offer Thursday as the nation’s third-largest newspaper publisher tries to reduce approximately $2 billion in debt and improve its balance sheet.

Like many publishers, the owner of The Miami Herald and The Sacramento Bee has come under pressure as ad sales continue to dwindle. The recession and an ongoing shift of readers to the Internet have not helped either.

McClatchy said that it wants to exchange some notes due between 2011 and 2017 as well as some debt set to mature between 2027 and 2029 for up to $60 million in cash and up to $175 million new senior notes due 2014.

The 152-year-old McClatchy also amended a $1.15

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