USA TODAY Co., Inc.TDAY
USA TODAY Co., Inc. Debt Disclosure
NOTE 9 — Debt
2029 Term Loan Facility
The Company's debt as of December 31, 2025 and 2024 consisted of the financing arrangements described below.
December 31, 2025 | December 31, 2024 | |||||||
In millions | Principal balance | Unamortized original issue discount | Unamortized deferred financing costs | Carrying value | Principal balance | Unamortized original issue discount | Unamortized deferred financing costs | Carrying value |
2029 Term Loan Facility | $729.5 | $(8.8) | $(5.6) | $715.1 | $850.0 | $(12.2) | $(7.7) | $830.1 |
2031 Notes | 223.7 | (4.4) | (2.5) | 216.8 | 223.7 | (5.0) | (2.8) | 215.9 |
2027 Notes | 24.1 | (1.8) | — | 22.3 | 38.1 | (4.2) | (0.1) | 33.8 |
Total debt | $977.3 | $(15.0) | $(8.1) | $954.2 | $1,111.8 | $(21.4) | $(10.6) | $1,079.8 |
Less: Current portion of long-term debt | $(69.3) | $— | $— | $(69.3) | $(74.3) | $— | $— | $(74.3) |
Non-current portion of long-term debt | $908.0 | $(15.0) | $(8.1) | $884.9 | $1,037.5 | $(21.4) | $(10.6) | $1,005.5 |
On October 15, 2024 (the "Closing Date"), the Company entered into an Amendment and Restatement Agreement (the
"Amendment and Restatement Agreement") among the Company, as a guarantor, Gannett Holdings LLC ("Gannett Holdings"),
a wholly owned subsidiary of the Company, as the borrower (in such capacity, the "Borrower"), certain subsidiaries of the
Borrower as guarantors, the lenders party thereto, Citibank, N.A., as the existing collateral agent and administrative agent for
the lenders, and Apollo Administrative Agency LLC, as the successor collateral agent and administrative agent for the lenders,
which amended and restated the Company's existing First Lien Credit Agreement dated as of October 15, 2021 (as amended,
supplemented or otherwise modified from time to time prior to the Closing Date, the "Existing Credit Agreement"; the Existing
Credit Agreement, as amended and restated by the Amendment and Restatement Agreement, the "Amended Credit
Agreement") by and among the Company, as guarantor, the Borrower, certain subsidiaries of the Borrower as guarantors and
Citibank, N.A., as administrative agent and collateral agent. The Amended Credit Agreement provides for a $900.0 million
five-year first lien term loan facility (the "2029 Term Loan Facility"), which refinanced and replaced the Company's previous
five-year senior secured term loan facility in an original aggregate principal amount of $516.0 million (the "Senior Secured
Term Loan," and collectively with the 2029 Term Loan Facility, the "Term Loans"). The 2029 Term Loan Facility is comprised
of an initial term loan facility of $850.4 million, funded on the Closing Date (the "2029 Initial Draw Facility"), and a delayed
draw term loan facility of $49.6 million (the "2029 Delayed Draw Facility"), which was made available to the Borrower at its
discretion from the Closing Date and for a period of six months thereafter, subject to certain terms and conditions.
In April 2025, the Company received a waiver from certain lenders of its 2029 Term Loan Facility and certain holders of
its 2031 Notes (as defined below) and entered into a privately negotiated agreement with a holder of its 2027 Notes (as defined
below) to repurchase $14.0 million principal amount of its outstanding 2027 Notes at 105% of par value, plus accrued and
unpaid interest, for $15.0 million in cash. This transaction was financed using proceeds from the Company's 2029 Delayed
Draw Facility, and as a result as of December 31, 2025, $15.0 million had been drawn under the 2029 Delayed Draw Facility.
As a result of this transaction, the Company recognized an immaterial loss on the early extinguishment of debt during the year
ended December 31, 2025.
The 2029 Term Loan Facility bears interest at an annual rate equal, at the Borrower's option, to either (i) an alternate base
rate (which shall not be less than 2.50% per annum) plus a margin equal to 4.00% per annum or (ii) Adjusted Term SOFR
(which shall be no less than 1.50%) plus a margin equal to 5.00% per annum. The 2029 Term Loan Facility will mature on
October 15, 2029 and is freely prepayable without penalty.
The 2029 Term Loan Facility is amortized at a rate of $17.3 million per quarter. In addition, we are required to repay the
2029 Term Loan Facility from time to time with (i) the proceeds of non-ordinary course asset sales and casualty and
condemnation events, (ii) the proceeds of indebtedness that is not otherwise permitted under the 2029 Term Loan Facility and
(iii) the aggregate amount of cash and cash equivalents on hand at the Company and our restricted subsidiaries in excess of
$100.0 million as of the last day of any fiscal year of the Company (beginning with the fiscal year ended December 31, 2024).
The 2029 Term Loan Facility contains usual and customary covenants for credit facilities of this type, including a
requirement to have minimum unrestricted cash of $30 million as of the last day of each fiscal quarter, and restricts, among
other things, our ability to incur debt, grant liens, sell assets, make investments and pay dividends, in each case with customary
exceptions, including an exception that permits dividends and repurchases of outstanding junior debt or equity in (i) an amount
of up to $25 million per fiscal quarter if the First Lien Net Leverage Ratio for such fiscal quarter is equal to or less than 2.00 to
1.00 but greater than 1.50 to 1.00, (ii) an amount of up to $50 million per fiscal quarter if the First Lien Net Leverage Ratio for
such fiscal quarter is equal to or less than 1.50 to 1.00 but greater than 1.00 to 1.00, and (iii) an unlimited amount if the First
Lien Net Leverage Ratio for such fiscal quarter is equal to or less than 1.00 to 1.00. As of December 31, 2025, the Company
was in compliance with all of the covenants and obligations under the 2029 Term Loan Facility.
As of December 31, 2025 and 2024, the 2029 Term Loan Facility was recorded at carrying value, which approximated fair
value, in the Consolidated balance sheets and was classified as Level 2.
In connection with the Term Loans, for the years ended December 31, 2025 and 2024, the Company recognized interest
expense of $74.1 million and $45.0 million, respectively, and paid cash interest of $69.0 million and $42.5 million,
respectively. For the years ended December 31, 2025 and 2024, the Company recognized amortization of original issue
discount of $2.5 million and $2.3 million, respectively, and amortization of deferred financing costs of $1.6 million and $0.7
million, respectively. Additionally, during the years ended December 31, 2025 and 2024, the Company recognized a loss on
early extinguishment of debt of $1.4 million and $2.5 million, respectively, related to the write-off of original issue discount
and deferred financing costs as a result of early prepayments on the Term Loans.
For the year ended December 31, 2025, the Company prepaid $135.5 million on the 2029 Term Loan Facility, including
the quarterly amortization payments, which was classified as financing activities in the Consolidated statements of cash flows.
As of December 31, 2025, the effective interest rate for the 2029 Term Loan Facility was 9.6%.
Senior Secured Convertible Notes due 2027, Senior Secured Convertible Notes due 2031, and the Convertible Notes Exchange
The 6.000% Senior Secured Convertible Notes due 2027 (the "2027 Notes") were issued pursuant to an Indenture dated as
of November 17, 2020 (as amended, supplemented or otherwise modified from time to time, the "2027 Notes Indenture"),
between the Company and U.S. Bank National Association, as trustee.
In connection with the issuance of the 2027 Notes, the Company entered into an Investor Agreement (the "Investor
Agreement") with the holders of the 2027 Notes (the "Holders") establishing certain terms and conditions concerning the rights
and restrictions on the Holders with respect to the Holders' ownership of the 2027 Notes. The Company also entered into an
amendment to the Registration Rights Agreement dated November 19, 2019, between the Company and FIG LLC.
On October 15, 2024, the Company completed privately negotiated transactions with certain holders of 2027 Notes
pursuant to which it (i) repurchased a total of $223.6 million in aggregate principal amount of 2027 Notes for cash at a rate of
$1,110 per $1,000 principal amount of 2027 Notes, for aggregate cash consideration of $248.2 million and (ii) exchanged a
total of $223.6 million in aggregate principal amount of 2027 Notes for new 6.000% Senior Secured Convertible Notes due
2031 (the "2031 Notes" and such repurchase and exchange, collectively, the "Convertible Notes Exchange"). The Company
also paid accrued and unpaid interest of approximately $10.0 million to the holders of 2027 Notes who participated in the
Convertible Notes Exchange.
Additionally, on October 15, 2024, the Company issued and sold $110,000 in aggregate principal amount of 2031 Notes in
a privately negotiated transaction (the "2031 Notes Sale").
The 2031 Notes were issued pursuant to an indenture, dated as of October 15, 2024 (the "2031 Notes Indenture"), among
the Company, the guarantors party thereto, U.S. Bank Trust Company, National Association, as trustee, and Alter Domus
Products Corp, as collateral agent.
Concurrently with the Convertible Notes Exchange, the Company and the guarantors party thereto entered into a
supplemental indenture to the 2027 Notes Indenture pursuant to which (i) substantially all of the restrictive covenants contained
in the 2027 Notes Indenture were eliminated, (ii) certain of the default provisions contained in the 2027 Notes Indenture were
eliminated and (iii) certain related provisions were amended to conform with such eliminations.
Interest on the 2027 Notes and 2031 Notes is payable semi-annually in arrears, and the 2027 Notes and 2031 Notes mature
on December 1, 2027, and December 1, 2031, respectively, unless earlier repurchased or converted. The 2027 Notes and 2031
Notes may be converted at any time by the holders thereof into cash, shares of the Company's common stock, par value $0.01
per share (the "Common Stock") or any combination of cash and Common Stock, at the Company's election. The initial
conversion rate for both the 2027 Notes and the 2031 Notes is 200 shares of Common Stock per $1,000 principal amount of the
2027 Notes and the 2031 Notes, respectively, which is equal to a conversion price of $5.00 per share of Common Stock (the
"Conversion Price"). As of December 31, 2025, the amount by which the 2027 Notes and the 2031 Notes if-converted values
exceeded their principal values was $0.7 million and $6.7 million, respectively.
Upon the occurrence of a "Make-Whole Fundamental Change" (as defined in the 2027 Notes Indenture and the 2031 Notes
Indenture), the Company will in certain circumstances increase the conversion rate for the 2027 Notes and the 2031 Notes for a
specified period of time. If a "Fundamental Change" (as defined in the 2027 Notes Indenture and the 2031 Notes Indenture)
occurs, the Company will be required to offer to repurchase the 2027 Notes and the 2031 Notes at a repurchase price of 110%
of the principal amount thereof.
Under the 2031 Notes Indenture, the Company can only pay cash dividends up to an agreed-upon amount, provided the
ratio of consolidated debt to EBITDA (as such term is defined in the 2031 Notes Indenture) does not exceed a specified ratio. In
addition, the 2031 Notes Indenture provides that, at any time that the Company's Total Gross Leverage Ratio (as defined in the
2031 Notes Indenture) exceeds 1.5 and the Company approves the declaration of a dividend, the Company must offer to
purchase a principal amount of 2031 Notes equal to the proposed amount of the dividend.
The Company will have the right to redeem for cash up to the lesser of (i) approximately $72.8 million and (ii) 30% of the
aggregate principal amount of 2031 Notes issued pursuant to the 2031 Notes Indenture, in either case, with such amount
reduced by 30% of the principal amount of 2031 Notes that has been converted by the holders of the 2031 Notes or redeemed or
repurchased by the Company, at a redemption price of 140% of the principal amount thereof, on or prior to December 1, 2030
(or December 1, 2028 if the 2029 Term Loan Facility is refinanced or amended to permit the redemption of the 2031 Notes in
an amount equal to or greater than such principal amount of 2031 Notes).
The 2027 Notes and 2031 Notes are guaranteed by Gannett Holdings and all subsidiaries of the Company that guarantee
the 2029 Term Loan Facility. The 2027 Notes and 2031 Notes rank as senior secured debt of the Company and are secured by
liens on the same collateral package that secures the indebtedness incurred in connection with the 2029 Term Loan Facility. The
2027 Notes are secured by liens that are junior to the liens securing indebtedness incurred under the 2029 Term Loan Facility
and the 2031 Notes. The 2031 Notes are secured by liens that are junior to the liens securing indebtedness incurred under the
2029 Term Loan Facility but senior to the liens securing the 2027 Notes.
The 2031 Notes Indenture includes affirmative and negative covenants, including limitations on liens, indebtedness,
dispositions, loans, advances and investors, sale and leaseback transactions, restricted payments, transactions with affiliates,
restrictions on dividends and other payment restrictions affecting restricted subsidiaries, negative pledges, and modifications to
certain agreements. The 2031 Notes Indenture also requires the Company to maintain, as of the last day of each fiscal quarter, at
least $30.0 million of Qualified Cash (as defined in the 2031 Notes Indenture). The 2027 Notes Indenture and the 2031 Notes
Indenture include customary events of default.
The 2027 Notes have two components: (i) a debt component, and (ii) an equity component. As of December 31, 2025 and
2024, the debt component of the 2027 Notes was recorded at carrying value in the Consolidated balance sheets. The carrying
value of the 2027 Notes reflected the balance of the unamortized discount related to the value of the conversion feature assessed
at inception and did not approximate fair value as of December 31, 2025. The 2027 Notes were classified as Level 2, and based
on unadjusted quoted prices in the active market obtained from third-party pricing services, the Company determined that the
estimated fair value of the 2027 Notes was $28.9 million as of December 31, 2025, and was primarily affected by fluctuations
in market interest rates and the price of the Company's Common Stock.
In connection with the Convertible Notes Exchange, for the year ended December 31, 2024, the Company recognized a net
gain on extinguishment of $63.2 million, after the recognition of the write-off of unamortized original issue discount of $50.3
million, and unamortized deferred financing costs of $1.1 million.
As of December 31, 2025, the Company recorded a reduction in Additional paid-in capital in the Consolidated balance
sheet of $2.0 million related to the repurchase of 2027 Notes in April 2025, and as of December 31, 2024, the Company
recorded a reduction in Additional paid-in capital in the Consolidated balance sheet of $237.5 million related to the Convertible
Notes Exchange. The equity component of the 2027 Notes was classified as Level 3 as it was calculated based on the aggregate
fair value of the 2027 Notes which used a binomial lattice model and assumptions based on market information and historical
data, and significant unobservable inputs. As of December 31, 2025 and 2024, the amount of the equity component of the 2027
Notes remaining in Additional paid-in capital was $40.0 million and $42.0 million, respectively, net of tax. The remaining 2027
Notes are convertible into 4.8 million shares of Common Stock, based on the initial conversion price of $5.00 per share.
The 2031 Notes have two components: (i) a debt component, and (ii) an equity component. As of December 31, 2025 and
2024, the debt component of the 2031 Notes was recorded at carrying value in the Consolidated balance sheets. The 2031 Notes
were classified as Level 2 because they were measured at fair value using commonly accepted valuation methodologies and
indirectly observable, market-based risk measurements and historical data, and a review of prices and terms available for
similar debt instruments that do not contain a conversion feature. As of December 31, 2025, the Company determined that the
carrying value of the 2031 Notes did not approximate fair value.
The excess of the fair value over the principal value of the 2031 Notes was recorded in Additional Paid-in capital as the
2031 Notes were issued at a 50% premium. The equity component of the 2031 Notes was classified as Level 3, as it was
calculated based on the aggregate fair value of the 2031 Notes which used a binomial lattice model and assumptions based on
market information and historical data, and significant unobservable inputs. As of December 31, 2025 and 2024, the amount of
the equity component recorded in Additional paid-in capital was $80.4 million, net of tax. The 2031 Notes are convertible into
44.7 million shares of Common Stock, based on the initial conversion price of $5.00 per share.
In connection with the 2027 Notes and the 2031 Notes, for the years ended December 31, 2025 and 2024, the Company
recognized interest expense of $15.1 million and $26.2 million, respectively, and paid cash interest of $15.2 million and $27.4
million, respectively. In connection with the 2027 Notes and the 2031 Notes, for the years ended December 31, 2025 and 2024,
the Company recognized amortization of original issue discount of $1.6 million and $11.9 million, respectively, and
amortization of deferred financing costs of $0.4 million and $0.3 million, respectively. The effective interest rate on the debt
component of the 2027 Notes was 10.5% as of December 31, 2025. The effective interest rate on the debt component of the
2031 Notes was 6.6% as of December 31, 2025.
For the year ended December 31, 2025, no shares of Common Stock were issued upon conversion, exercise, or satisfaction
of the required conditions of the 2027 Notes or the 2031 Notes. Refer to Note 13 — Supplemental equity and other information
for details on the impact of the 2027 Notes and the 2031 Notes to diluted earnings per share under the if-converted method.
As discussed above, in April 2025, the Company received a waiver from certain lenders of its 2029 Term Loan Facility and
certain holders of its 2031 Notes and entered into a privately negotiated agreement with a holder of its 2027 Notes to repurchase
$14.0 million principal amount of its outstanding 2027 Notes at 105% of par value, plus accrued and unpaid interest, for
$15.0 million in cash. This transaction was financed using proceeds from the Company's 2029 Delayed Draw Facility, and as a
result as of December 31, 2025, $15.0 million had been drawn under the 2029 Delayed Draw Facility. As a result of this
transaction, the Company recognized an immaterial loss on the early extinguishment of debt during the year ended December
31, 2025.
Future debt obligation paymentsFuture debt obligation payments for the year ended December 31, are as follows:
In millions | Principal payments |
2026 | $69.3 |
2027 | 93.5 |
2028 | 69.3 |
2029 | 521.5 |
2030 and thereafter | 223.7 |
Total future debt obligations | $977.3 |
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 20, 2025 | |
| 2023 | Feb 22, 2024 | |
| 2022 | Feb 23, 2023 | |
| 2021 | Feb 24, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Mar 2, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Feb 28, 2018 | |
| 2016 | Feb 21, 2017 | |
| 2015 | Feb 25, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.