Newspaper publisher McClatchy Co. said Friday it has renegotiated its agreement with lenders to gain flexibility, winning concessions that help the company avoid a potential default as advertising revenue continued falling.
McClatchy (nyse: MNI - news - people ) said the amendment to a $1.175 billion debt agreement will change its terms to account for the company's reduced cash flow. In return, McClatchy agreed to put up more collateral and pay higher interest rates.
"It's important for the company to get additional flexibility," said Mike Simonton, media analyst at Fitch Ratings, which analyzes corporate debt. "The company had exhausted much of the room it had under its prior covenant package."
