Friday, January 18, 2008

McClatchy sells stake in SP Newsprint for cash, will use the $ pay down McClatchy's debt


NEW YORK (Associated Press) - Newspaper chain operator McClatchy Co. said Friday it will sell its one-third share in newsprint maker SP Newsprint Co. to Greenwich, Conn.-based White Birch Paper Co. for $350 million in cash.

After paying taxes on the transaction, McClatchy said it expects to record $40 million in proceeds, which will be used to pay down debt.

UPDATE: 9:20: McClatchy press release here. Smart move only if McClatchy got a good price for its share of SP Newsprint.