The parent of The Miami Herald, The Sacramento Bee, and many other papers renegotiated its credit facility just days before the early October crash of stock and credit markets. It was forced to pay higher interest and put up more collateral, and it caught more flak from ratings firms. But the timing was fortuitous, notes McClatchy CFO/Vice President of Finance Patrick J. Talamantes."
As a result of that, we aren't seeing any issue from the current crisis," he says. "We got it done right in the middle of everything, and we were very thankful to get it done when we did."
Talamantes forgot to mention MNI's stock could be worthless, circulation is shrinking, and ad revenue has collapsed. Not to mention the renegotiation means McClatchy's business decisions are now made with the bankers in mind. Other than that, re-negotiating McClatchy's debt was awesome!