Wednesday, May 27, 2009

Investors think McClatchy can swap unsecured notes for 33% and 28% of par value

So sez Fitz and Jen.
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3 comments:

Anonymous said...

Wallstreet Journal says...
Newspaper publisher McClatchy Co. is asking holders of $1.15 billion in debt to give up 80% of what they are owed, joining a growing list of companies seeking to lower their borrowings by exchanging existing obligations.

Under the offering, bondholders will get anywhere from 18 to 33 cents on the dollar, depending on what issues they hold and how quickly they agree to the swap. Those who sign on will get cash and new bonds that pay significantly higher interest rates ...

Anonymous said...

What's with all of the ads on the left hand side?

Walt said...

A lot depends on how many bonds are protected by credit default swaps. If the bond holders have CDS protection, then they will prefer default and bankruptcy.

Walt-in-Durham