PROVIDENCE – Gannett Co., parent of The Providence Journal and other local newspapers, announced Friday that it used the proceeds from real estate sales totaling $21.3 million in January to reduce its first debt lien by $22.3 million.
The McLean, Va.-based company said about $5 million of the proceeds went to repurchase about $6.1 million of 6% first lien notes due Nov. 1, 2026, at a discount to par. The remaining $16.3 million went to repay some of its five-year senior secured term loan facility, according to a news release.
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“We continue to make meaningful progress in reducing our first lien debt, which will continue to lead toward an improved capital structure and stronger balance sheet,’ said Michael Reed, Gannett CEO and chairman. “We expect to sell another $50 million to $60 million in real estate and other assets in 2023, the proceeds of which we expect to use to pay down debt. As a result, we expect to reduce our debt within the year by approximately $120 million through the sale of real estate and other assets, along with our scheduled quarterly amortization payments.”
Gannett has reported substantial losses in the prior two quarters. The company reported a $53.7 million loss in the second quarter of 2022 and a $54.1 million loss in the third quarter. The company expects a total net loss of $60 million to $70 million this year, according to USA Today.
On Aug 12, Gannett laid off more than 400 employees at several locations. Then the company announced companywide cost-cutting measures on Oct. 13, which included five mandatory unpaid furlough days between Dec. 19-30, suspension of the company’s 401(k) match, voluntary severance package offers and an optional four-day workweek. It also announced a new round of staff reductions in December.
The number of job cuts was not specified. However, a Gannett executive told The Poynter Institute for Media Studies Inc. the company was targeting a 6% reduction, about 200 of its 3,400 newsroom employees.
On Dec. 15, Lynne Sullivan was named regional executive editor of The Providence Journal and The Newport Daily News. She succeeded David Ng, who was laid off at the beginning of the month as part of Gannett’s job cuts.
The company owns and operates several papers in Rhode Island and Massachusetts, including The Providence Journal, The Taunton Gazette, The Newport Daily News, The Cape Cod Times, The Herald News in Fall River, The Worcester Telegram, and The Standard-Times in New Bedford. Gannett also owns publications in nearly every state in the nation, as well as operations in the United Kingdom.
