Tren Griffin+ Your Authors @trengriffin I work for Microsoft. Previously I was a partner at Eagle River, a private equity firm established by Craig McCaw. I am on the board of directors of Kymeta. Aug. 06, 2019 1 min read + Your Authors

25iQuiz: This deal announced today involves Leon Black’s Apollo Global Management funding the purchase through a $1.79 billion term loan at an 11.5% annual interest rate. What's the deal? Clue: It's news about news.

Senior secured term loan at 11.5%.

"The combination will bring under one roof 263 daily media organisations across 47 states and the US Pacific island territory of Guam. This means that one in six newspapers in the US will be owned by a single company." 

It is surprising how little attention this story is attracting. Distressed debt financings like this mean the people involved think a chain of events is likely. This is not good news for news. What other senior secured term loans trade at a 11.5% annualized rate?

"Gannett reported today its revenue fell 9.6% in the second quarter, compared with a year earlier, to $660.3M. Net income of $26.7M.
Net income included $6.5M of after-tax restructuring, asset impairment charges, and other costs, offset by $32.8M of gains on property sales."

"Revenues on a same property basis were down 6.9% at New Media year-to-year. Print advertising revenue was off 15.3 percent at New Media." 

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