Financial Boost for Gannett: Apollo-backed $900M Credit Facility Secured
- Gannett shares rise 11% after securing new credit facility
- Apollo manages the $900 million credit facility
- Proceeds used for repayment and note purchases
Gannett’s shares increased by 11% to $5.43 after the company entered into a commitment letter for comprehensive debt refinancing, which is expected to extend its debt maturities and reduce future dilution from its 6% senior secured convertible notes due 2027. Apollo’s affiliates manage the new $900 million credit facility, consisting of an initial term loan of $675 million and a delayed draw term loan of $225 million. Proceeds will be used to repay Gannett’s five-year senior secured term loan, purchase/redeem notes, and buy back up to 50% of the 2027 Notes. The transactions are set to close later this fall.
Factuality Level: 10
Factuality Justification: The article provides accurate and objective information about Gannett’s debt refinancing deal with Apollo, including details on the commitment letter, new credit facility amount, and intended use of proceeds. It does not contain any digressions, misleading information, sensationalism, redundancy, or personal perspective presented as a fact.
Noise Level: 3
Noise Justification: The article provides relevant and accurate information about Gannett’s debt refinancing deal with Apollo, including details on the commitment letter, new credit facility, and its intended use of proceeds. However, it lacks analysis or exploration of long-term trends or consequences for those affected by the decision. It also does not offer actionable insights or new knowledge beyond reporting the news.
Public Companies: Gannett (GCI)
Private Companies: Apollo
Key People: Chris Wack (Author)
Financial Relevance: Yes
Financial Markets Impacted: Gannett’s stock price and debt maturities, Apollo-managed funds
Financial Rating Justification: The article discusses Gannett’s debt refinancing, impacting its financial situation and stock price, as well as the involvement of Apollo-managed funds. This directly pertains to financial topics and has an impact on both the company and related financial markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no mention of an extreme event in the article.
Deal Size: 900000000
Move Size: The market move size mentioned in the article is a 11% increase in Gannett shares price, which reached $5.43.
Sector: Technology
Direction: Up
Magnitude: Large
Affected Instruments: Stocks
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