Business & Real Estate

McClatchy gets warning on low stock price

The McClatchy Co. said Friday it has been warned that it could get delisted by the New York Stock Exchange because of its falling stock price.

Sacramento-based McClatchy, which owns The Sacramento Bee and other newspapers, also announced a privately negotiated deal to reduce its debt burden by $30.8 million.

McClatchy said it received a warning from the New York Stock Exchange on Tuesday that it could lose its exchange listing because its average closing share price fell below $1 for 30 straight trading days. If McClatchy were to lose its listing, it would be forced to go to one of the other exchanges.

The warning doesn’t affect McClatchy’s day-to-day operations, and the company has six months to regain compliance. The company “intends to cure the deficiency,” it said. Since the receipt of the warning, McClatchy’s share price has risen above $1. The company closed Friday at $1.02, up a penny, although it dropped back to $1.01 in after-hours trading.

As for the debt deal, the company said it bought back $20.8 million worth of its bonds that mature next year, and another $10 million in bonds coming due in 2022 in a private transaction. The deal leaves McClatchy’s total debt at $906.5 million.

“As this transaction demonstrates, we remain committed to reducing debt and interest,” said Chief Financial Officer Elaine Lintecum in a prepared statement.

Dale Kasler: 916-321-1066, @dakasler

  Comments