Business News

Acquisition of SP Newsprint Co. Closes

Wednesday 02. April 2008 - SP Newsprint Co. ("SP Newsprint") announced today that Peter Brant, certain related persons and his partners successfully completed the previously announced $350 million acquisition of SP Newsprint, a privately held producer of newsprint, owned in an equal, general partnership by affiliates of Cox Enterprises, Inc., Media General, Inc. and The McClatchy Company.

The sale includes SP Newsprint’s two newsprint mills in the United States as well as SP Recycling Corp., SP Newsprint’s wholly owned recycling subsidiary. Mr. Brant is the controlling shareholder of White Birch Paper Company, which is the second largest producer of newsprint in North America.

GE Corporate Lending provided the acquisition financing and GE Capital Markets acted as sole lead arranger and bookrunner for the financing transaction. TD Securities (USA) LLC acted as financial advisor to SP Newsprint in connection with the sale. Cahill Gordon & Reindel LLP represented Mr. Brant in connection with the acquisition and the borrower in connection with the financing. King & Spalding LLP represented SP Newsprint in connection with the sale to the buyers.