McClatchy’s debt is based on the London Interbank Offered Rate (LIBOR), which is the rate at which the world’s most preferred borrowers are able to borrow money. The LIBOR climbed to an all-time high of 6.88% this week, which Duncan estimates will cost McClatchy at least $1 million a week more in debt service payments than it expected just a week ago. The same dynamic applies to any other publisher looking to relieve debt loads. Restructuring will only force those costs further upward.
Friday, October 3, 2008
Uh oh!... McClatchy's debt restructuring will cost the company an extra $1 million a week than it expected just a week earlier
Paul Gillin has word on how the turmoil on Wall Street has damaged the outlook for McClatchy.