McClatchy Announces Amendment to Credit Agreement

The McClatchy Company MNI announced that lenders have agreed to amend its credit agreement to eliminate restrictions on the early retirement of the company's existing public bonds. As previously announced, McClatchy will repay its remaining $41.0 million of bank term loans by the end of 2010. As part of the amendment, the company has agreed to reduce its revolving credit commitments from $236.4 million to $150.8 million. The new revolving credit commitments will decline further to $125 million on June 27, 2011, and mature on July 1, 2013. McClatchy expects to have approximately $96.5 million in revolver availability upon effectiveness of the amendment after taking into account letters of credit issued under the revolving credit. Among other things, the amendment also modifies certain restrictions on investments and dividends.