Released: 05/21/2009

SACRAMENTO, Calif., May 21 /PRNewswire-FirstCall/ -- The McClatchy Company (NYSE: MNI) announced that yesterday it entered into an amendment to its $1.150 billion bank credit facility which, among other things, allows it to use its revolving credit facility for up to $60 million to repurchase its 7.125% Notes due June 1, 2011 or its 4.625% Notes due November 1, 2014, subject to certain conditions. The cash may also be used in connection with a debt exchange offer so long as any new notes issued in such an offer have a stated maturity of no earlier than July 1, 2014. As of May 20, 2009, McClatchy had $140.8 million available under its credit facilities. McClatchy today separately announced a private exchange offer to exchange certain outstanding notes and debentures for a combination of cash and new debt securities.

Pat Talamantes, McClatchy's chief financial officer, said, "In addition to the outstanding efforts made by our papers to weather this downturn, we believe that being able to have more flexibility in the use of our revolving credit facility will allow us to put the company in a stronger financial position to manage our capital structure through this downturn. This enhanced flexibility is clearly a positive development."

Among other things, the amended Credit Agreement:

    --  Allows the company to use its revolving credit facility for up to $60
        million to repurchase its 7.125% Notes due June 1, 2011 or its 4.625%
        Notes due November 1, 2014, subject to certain conditions.
    --  Implements a reduction in the revolving credit commitment now totaling
        $600 million to $560 million (to a total facility of $1.1 billion) in
        increments through December 31, 2009; and a further reduction of $10
        million through June 30, 2010.  The final maturity of the revolving
        credit commitment and the term loan remains June 27, 2011.
    --  Increases pricing on all outstanding loans to interest at the London
        Interbank Offered Rate (LIBOR) plus a spread ranging from 325 basis
        points to 475 basis points, based upon the total leverage ratio.
        Interest will increase by 50 basis points to LIBOR plus 400 basis points
        when leverage is between 5.0 and 6.0 times.  As of March 29, 2009, the
        company's leverage ratio, as defined, was 5.90 to 1.00.
    --  Amends the requirements for mandatory prepayments from certain sources
        of cash and further limits the payment of dividends, repurchases of
        stock and the ability to retire those bonds that come due after 2011.

About McClatchy

The McClatchy Company is the third largest newspaper company in the United States, with 30 daily newspapers, approximately 50 non-dailies, and direct marketing and direct mail operations. McClatchy also operates leading local websites in each of its markets which extend its audience reach. The websites offer users comprehensive news and information, advertising, e-commerce and other services. Together with its newspapers and direct marketing products, these interactive operations make McClatchy the leading local media company in each of its premium high growth markets. McClatchy-owned newspapers include The Miami Herald, The Sacramento Bee, the Fort Worth Star-Telegram, The Kansas City Star, The Charlotte Observer, and The News & Observer (Raleigh).

McClatchy also owns a portfolio of premium digital assets, including 14.4% of CareerBuilder, the nation's largest online job site, 25.6% of Classified Ventures, a newspaper industry partnership that offers two of the nation's premier classified websites: the auto website, cars.com, and the rental site, apartments.com and 33.3% of HomeFinder, LLC which operates the real estate website HomeFinder.com. McClatchy is listed on the New York Stock Exchange under the symbol MNI.

Additional Information:

Statements in this press release regarding future financial and operating results, including revenues, anticipated savings from cost reduction efforts, future dividend payments, cash flows, debt levels, as well as future opportunities for the company and any other statements about management's future expectations, beliefs, goals, plans or prospects constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements that are not statements of historical fact (including statements containing the words "believes," "plans," "anticipates," "expects," "estimates" and similar expressions) should also be considered to be forward-looking statements. There are a number of important risks and uncertainties that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including: the duration and depth of the economic recession may reduce its income and cash flow greater than expected; McClatchy may not generate cash from operations, or otherwise, necessary to reduce debt as expected; McClatchy may not consummate contemplated transactions to enable debt reduction on anticipated terms or at all; McClatchy may not achieve its expense reduction targets or may do harm to its operations in attempting to achieve such targets; McClatchy's operations have been, and will likely continue to be, adversely affected by competition, including competition from internet publishing and advertising platforms; McClatchy's expense and income levels could be adversely affected by changes in the cost of newsprint and McClatchy's operations could be negatively affected by any deterioration in its labor relations, bankruptcies or financial strain of its major advertising customers; McClatchy's ability to achieve and maintain compliance with NYSE listing standards, including the NYSE share price standard and compliance with its market capitalization and stockholders' equity standards; commencement by the NYSE of suspension and delisting procedures if McClatchy fails to implement successfully a plan to correct non-compliance with the NYSE listing standards; as well as the other risks detailed from time to time in the Company's publicly filed documents, including the Company's Annual Report on Form 10-K for the year ended December 28, 2008, filed with the U.S. Securities and Exchange Commission. McClatchy disclaims any intention and assumes no obligation to update the forward-looking information contained in this release.

SOURCE The McClatchy Company

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