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Gannett Taps $1 Billion Convertible

Gannett issuing $1 billion of 30 year senior convertible notes and will use the proceeds from the deal to repay a portion of its outstanding commercial debt.

The initial interest rate on the notes will float at 23 basis points under the 1-month LIBOR benchmark, which translates to 5.09%.  The interest rate will reset monthly. Initially, each note, of $1,000 principal value, will be convertible into 10.853 shares of Gannett common stock at a conversion price of $92.14 per share. The transaction settles Friday.

Gannett owns 23 television stations in the U.S. and is one of the leading international newspaper publishers.