USA Today parent Gannett’s stock soars after upbeat outlook, refinancing of high-yielding debt

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Shares of USA Today-parent Gannett Co. Inc. soared 23.0% toward a five-month high in midday trading Tuesday, after the media and marketing company provided an upbeat outlook for the fourth quarter, and announced the refinancing high-yielding debt. Chief Executive Michael Reed said in a release that as Gannett improves its capital structure with the refinancing, “we are also seeing continued improvement in our revenue trends, which we expect will drive strong fourth-quarter results.” The company said it refinanced $500 million of its 11.5% term loan that matures in 2024, with 6.0% convertible notes due in 2027. That reduces the outstanding term loan to $1.118 billion. In comparison, three-year Treasury notes yielded 0.24% at Monday’s close. Reed said the refinancing reduces annual interest expenses by about $28 million. Gannett’s stock has tumbled 66.5% year to date, while the S&P 500 has gained 12.0%.
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