USA Today publisher Gannett reduces debt by $22.3 million using proceeds from real estate sales

USA Today publisher Gannett Co. Inc.
GCI,
+0.82%
said Friday it has used the proceeds of real estate sales totaling $21.3 million in January to reduce first lien debt by $22.3 million. The McLean, Va.-based company said about $5 million of the proceeds went to repurchase about $6.1 million of 6.00% 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. “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,” Chief Executive Michael Reed said in a statement. “: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.” The stock was down 1.2% premarket and has fallen 56% in the last 12 months, while the S&P 500
SPX,
-1.04%
has fallen 7%.