Providence Equity has stake in chain slashed

PROVIDENCE – Providence Equity Partners saw its equity stake in Freedom Newspapers slashed when the owner of The Orange County Register in California and more than 30 other daily newspapers filed for bankruptcy earlier this month.
Rhode Island-based Providence Equity and Blackstone Group took a 40 percent equity stake in Freedom Newspapers in 2004. Following the bankruptcy filing on Sept. 1, the two private equity firms and the other owners, the descendents of the company’s founder R.C. Hoiles will have their equity stakes reduced to 2 percent.
The three groups will receive warrants that will allow them to build up to an additional 10 percent stake.
Freedom has said it plans to reduce its debt of $770.6 million – much of which was the result of the deal with Blackstone and Providence Equity – to about $325 million. The company does not plan to sell its assets, which include television stations as well as newspapers.
Providence Equity Partners Inc. is a global private investment firm based in Providence, with offices in Los Angeles, New York City, London, Hong Kong and New Delhi. The firm has invested in more than 100 companies, operating in nearly two dozen nations, since its founding in 1989. Additional information is available at www.provequity.com.