Business News

Newspaper Publisher A. H. Belo Corporation Announces Credit Agreement Amendment

Monday 02. February 2009 - Newspaper publisher A. H. Belo Corporation (NYSE:AHC) said today that its bank syndicate has approved an amendment to the Company's revolving credit facility.

The amendment is effective January 30, 2009 and extends the maturity of the credit facility through April 30, 2011. The amended $50 million facility, which is subject to a borrowing base, provides the necessary working capital flexibility required to navigate through the current economic environment.

Among other things, the amendment:
— Creates an asset-based revolving credit facility secured by all
personal property assets of the Company and its active subsidiaries
and certain specified real property
— Establishes minimum quarterly adjusted EBITDA covenant requirements in
2009 and a fixed charge coverage ratio covenant in 2010 of 1.0 to 1.0
— Allows capital expenditures and investments of up to $16.0 million per
year (in total)
— Allows A. H. Belo to pay dividends when the Company’s fixed charge
coverage ratio exceeds 1.2 to 1.0 and the aggregate availability under
the credit facility exceeds $15.0 million
— Sets pricing at LIBOR plus a spread of 375 basis points
— Contains other covenants including limitations on indebtedness, liens,
and asset sales




“A. H. Belo is focused on expense management and streamlining processes to operate more profitably,” said Robert W. Decherd, chairman, president and Chief Executive Officer. “Given current trends in advertising revenues we are reviewing all facets of our operations with the goal of reducing costs whenever possible. This work does not occur overnight and I believe the amendment to our credit facility provides adequate financial flexibility and the necessary runway for A. H. Belo to realign its operations.”