Gannett raises USD1.25 billion for Belo acquisition
According to The Washington Business Journal, Gannett Co Inc raised more than it had needed in debt offering to finance its USD2.2 billion acquisition of Dallas-based Belo Corp. Gannett sold senior notes valued at USD1.25 billion to institutional investors. The company intended to raise only USD1 billion.
Virginia-based Garnett is a publicly traded media holding company. The company is considered as the largest newspaper publisher in the US based on aggregate daily circulation.
The acquisition, valued at USD2.2 billion, would have Gannett paying USD1.5 billion to acquire Belo's outstanding shares. Garnett would also be absorbing USD715 million in existing corporate debt. The acquisition would also have Gannett adding 20 television stations Belo owned to its portfolio. Gannett had 23 television stations prior to the acquisition.
The acquisition is still awaiting approval from regulatory authorities, and is expected to be finalized before the year ends.