Monday, March 2, 2009

Gannett Fully Junked, Bank Facility Liens Spring

S&P joins the Moody's chorus and lays down the law on USA Today publisher Gannett, as it cuts it to junk rating (BB from BBB-). S&P thoughts not that different from those provided by the Moody's thinktank.
Also per a recent amendment to Gannett's credit facility, a junk downgrade means the facility employs cool sounding "springing liens", and the facility becomes fully secured, leaving bondholders with a whole lotta nothing and a loud sucking noise as their collateral disappears.
Sphere: Related Content
Print this post