A. H. Belo Corporation Amends Credit Agreement
October 24 2008 - 8:00AM
PR Newswire (US)
DALLAS, Oct. 24 /PRNewswire-FirstCall/ -- A. H. Belo Corporation
(NYSE:AHC) said today that its bank group has approved an amendment
and waiver to its credit facility. The amended credit agreement,
effective October 23, 2008, reduces the total commitment amount
from $100 million to $50 million; sets pricing at LIBOR plus a
spread of 250 basis points; waives the fixed charge ratio covenant
through January 31, 2009; restricts the payment of cash dividends
during such period; and, provides the bank group a security
interest in the Company's accounts receivable and inventory. The
amendment does not apply to the dividend declared on September 24,
2008 to be paid on November 10, 2008. Robert W. Decherd, chairman,
president and Chief Executive Officer, said, "We are pleased with
the added financial flexibility provided in this amendment --
although at a higher cost -- because it provides room for us to
make the best strategic and operational decisions to maximize
long-term shareholder value and uphold our brand equity. The Board
of Directors and Management Committee are using all available
alternatives to improve A. H. Belo's financial position and enable
the Company to manage through the current combination of cyclical
and secular pressures, including the nation's economic downturn."
Robert Decherd sent a letter to shareholders today that is posted
on the Company's Web site (http://www.ahbelo.com/) in the Investor
Relations section. A. H. Belo's credit agreement and amendment can
be accessed at http://www.sec.gov/. About A. H. Belo Corporation A.
H. Belo Corporation (NYSE:AHC) headquartered in Dallas, Texas, is a
distinguished news and information company that owns and operates
four daily newspapers and a diverse group of Web sites. A. H. Belo
publishes The Dallas Morning News, Texas' leading newspaper and
winner of eight Pulitzer Prizes since 1986; The Providence Journal,
the oldest continuously-published daily newspaper in the U.S. and
winner of four Pulitzer Prizes; The Press-Enterprise (Riverside,
CA), serving southern California's Inland Empire region and winner
of one Pulitzer Prize; and the Denton Record-Chronicle. The Company
publishes various specialty publications targeting niche audiences,
young adults and the fast-growing Hispanic market. The Company's
partnerships and/or investments include the Yahoo! Newspaper
Consortium and Classified Ventures, owner of cars.com. A. H. Belo
also owns direct mail and commercial printing businesses.
Additional information is available at http://www.ahbelo.com/ or by
contacting Maribel Correa, director/Investor Relations, at
214-977-2702. Statements in this communication concerning A. H.
Belo Corporation's (the "Company's") business outlook or future
economic performance, anticipated profitability, revenues,
expenses, dividends, capital expenditures, investments, future
financings, and other financial and non-financial items that are
not historical facts, are "forward-looking statements" as the term
is defined under applicable federal securities laws.
Forward-looking statements are subject to risks, uncertainties and
other factors that could cause actual results to differ materially
from those statements. Such risks, uncertainties and factors
include, but are not limited to, changes in capital market
conditions and prospects, and other factors such as changes in
advertising demand, interest rates, and newsprint prices; newspaper
circulation trends and other circulation matters, including changes
in readership patterns and demography, and audits and related
actions by the Audit Bureau of Circulations; challenges in
achieving expense reduction goals, and on schedule, and resulting
potential effects on operations; technological changes; development
of Internet commerce; industry cycles; changes in pricing or other
actions by competitors and suppliers; regulatory, tax and legal
changes; adoption of new accounting standards or changes in
existing accounting standards by the Financial Accounting Standards
Board or other accounting standard-setting bodies or authorities;
the effects of Company acquisitions, dispositions, co-owned
ventures, and investments; general economic conditions; significant
armed conflict; and other factors beyond our control, as well as
other risks described on Form 10-K and other public disclosures and
filings with the Securities and Exchange Commission. DATASOURCE: A.
H. Belo Corporation CONTACT: Maribel Correa, director|Investor
Relations of A. H. Belo Corporation, +1-214-977-2702 Web site:
http://www.ahbelo.com/
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