McClatchy Announces Expiration Date of 2017 Senior Secured Notes Offering; Provides Update on Second Quarter 2011 Performance

The McClatchy Company MNI today announced that its previously disclosed offer to repurchase $65 million of the company's 2017 senior secured notes will expire at 11:59 p.m. Eastern time on June 24, 2011. The company also provided an update of business trends for the second quarter of 2011. The company reported that combined total revenues in April and May 2011 were down 8.1% compared to the same period in 2010. Combined advertising revenues for the two-month period declined 9.1% compared to the same period in 2010. Management noted that total revenues declined 9.5% in the first quarter of 2011 and advertising revenue declined 11.0% compared to the first quarter of 2010. Through the first five months of 2011, total revenues declined 8.9% and advertising revenues were down 10.2% compared to the same period in 2010.   Gary Pruitt, McClatchy's chairman and chief executive, said, "We have seen an improvement in revenue trends in the second quarter of 2011, helped in part by retail advertising associated with the later Easter holiday in April. As previously reported, we expect cash expenses to be down in the mid-single digit range in the second quarter despite higher newsprint prices."