Gannett Announces Share Repurchase Program

Gannett Co., Inc. (“Gannett”, “we”, “us”, “our”, or the “Company”) (NYSE: GCI) announced today that the Company’s Board of Directors authorized a share repurchase program for the repurchase of up to $100 million of the Company’s common stock.“The authorization to buy back up to $100 million of common stock provides the Company with another mechanism to maximize long-term value for our shareholders,” said Michael Reed, Gannett Chairman and Chief Executive Officer. “We remain confident in our strategy and believe that our current stock price represents a significant discount to the intrinsic value of the company and its operating units. Over the last year we have significantly improved our capital structure and the stock repurchase program announced today provides us with additional flexibility to create long-term value for investors. We remain committed to a disciplined capital allocation strategy, including investments in our strategic priorities, continued debt paydown, and return of capital to our shareholders.

”Under the program, the Company may purchase its shares from time to time via opportunistic open market purchases, in privately negotiated transactions or using other strategies if advantageous under the circumstances, all in accordance with the rules of the Securities and Exchange Commission and other applicable legal requirements. The amount and timing of the purchases will be determined by the Company’s management based on a number of factors including but not limited to the price and availability of the Company’s shares, trading volume, capital availability, Company performance and general economic and market conditions. The Company may also from time to time establish a trading plan under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended, or effect one or more tender offers, to facilitate purchases of its shares under this program. The stock purchase program does not obligate the Company to acquire any particular amount of common stock, and may be modified, suspended, or discontinued at any time or from time to time at the Company’s discretion.

The Company also announced an amendment to its existing five-year senior secured credit agreement (the “Credit Agreement”) to provide for an incremental term loan in an aggregate principal amount not to exceed $50 million and to transition the interest rate base from LIBOR to Term SOFR due to regulatory requirements. The existing and incremental loans under the Credit Agreement will now bear interest at a per annum rate equal to Term SOFR + 5.00% per annum plus the applicable credit spread adjustment–11.448 bps for one-month Term SOFR, 26.161 bps for three-month Term SOFR and 42.826 bps for six-month Term SOFR. All obligations under the Credit Agreement are secured by all or substantially all of the assets of the Company and the direct and indirect material domestic subsidiaries of the Company (the “Guarantor Subsidiaries”). The obligations of the borrower under the Credit Agreement are guaranteed on a senior secured basis by the Company and the Guarantor Subsidiaries.

The amendment to the Credit Agreement also expands the definition of “Permitted Restricted Payments” to include up to $50 million of Company stock repurchases consummated on or prior to December 31, 2022. This is in addition to the ability of the Company to effect stock repurchases under other provisions of the Credit Agreement and its other debt facilities.
https://investors.gannett.com/news/news-details/2022/Gannett-Announces-Share-Repurchase-Program-and-Amendment-to-Credit-Agreement/default.aspx

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