DALLAS, Jan. 30 /PRNewswire-FirstCall/ -- Newspaper publisher A. H. Belo
Corporation (NYSE: AHC) said today that its bank syndicate has approved an
amendment to the Company's revolving credit facility. The amendment is
effective January 30, 2009 and extends the maturity of the credit facility
through April 30, 2011. The amended $50 million facility, which is subject to
a borrowing base, provides the necessary working capital flexibility required
to navigate through the current economic environment.
Among other things, the amendment:
- Creates an asset-based revolving credit facility secured by all
personal property assets of the Company and its active subsidiaries
and certain specified real property
- Establishes minimum quarterly adjusted EBITDA covenant requirements in
2009 and a fixed charge coverage ratio covenant in 2010 of 1.0 to 1.0
- Allows capital expenditures and investments of up to $16.0 million per
year (in total)
- Allows A. H. Belo to pay dividends when the Company's fixed charge
coverage ratio exceeds 1.2 to 1.0 and the aggregate availability under
the credit facility exceeds $15.0 million
- Sets pricing at LIBOR plus a spread of 375 basis points
- Contains other covenants including limitations on indebtedness, liens,
and asset sales
"A. H. Belo is focused on expense management and streamlining processes to
operate more profitably," said Robert W. Decherd, chairman, president and
Chief Executive Officer. "Given current trends in advertising revenues we are
reviewing all facets of our operations with the goal of reducing costs
whenever possible. This work does not occur overnight and I believe the
amendment to our credit facility provides adequate financial flexibility and
the necessary runway for A. H. Belo to realign its operations."
About A. H. Belo Corporation
A. H. Belo Corporation (NYSE: AHC) headquartered in Dallas, Texas, is a
distinguished newspaper publishing and local 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 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 the 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 in the Company's Annual
Report on Form 10-K for the year ended December 31, 2007, and other public
disclosures and filings with the Securities and Exchange Commission, including
the Company's information statement on Form 10 dated January 31, 2008.
