Gannett Co.is issuing $1 billion of 30 year senior convertible notes and will use the proceeds from the deal to repay a portion of its outstanding commercial debt.
The initial interest rate on the notes will float at 23 basis points under the 1-month LIBOR benchmark, which translates to 5.09%. The interest rate will reset monthly. Initially, each note, of $1,000 principal value, will be convertible into 10.853 shares of Gannett common stock at a conversion price of $92.14 per share. The transaction settles Friday.
Gannett owns 23 television stations in the U.S. and is one of the leading international newspaper publishers.