Today's LIBOR Rates
1 M |
0.31563 |
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3 M |
0.47500 |
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6 M |
0.68794 |
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1 YR |
1.06438 |
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McClatchy Amends LIBOR-Based Credit Facilities |
January 27, 2010
According to a company press release, The McClatchy Company, the third largest newspaper publisher in the United States, has amended credit facilities with rates based on LIBOR, the London Interbank Offered Rate. LIBOR is a filtered average of rates that banks charge each other for unsecured, short term loans.
McClatchy’s amendment entails the refinancing or the extension of maturity on its debt. The consolidated total leverage ratio covenant will increase immediately to 6.75 to 1.00, stepping down to 6.00 to 1.00 by December 2012. Pricing on all outstanding loans will come with a higher margin above LIBOR, from LIBOR plus 425 basis points to LIBOR plus 575 basis points. LIBOR floor will be 300. At the onset, McClatchy will pay an effective rate of 8.00%, LIBOR at a 300 point floor plus 500 points. LIBORATED.com has reported on companies with similar amendments to their LIBOR-based credit facilities, essentially trading relaxed terms for a higher margin above LIBOR in cost of funds.