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USA TODAY Co. to Acquire The Detroit News Under Binding LOI

Closing is expected by month-end following the end of the long-running joint operating agreement.

Overview

  • USA TODAY Co. executed a binding letter of intent with MediaNews Group to purchase The Detroit News.
  • The Detroit Free Press and The Detroit News will continue to publish separately under common ownership.
  • The purchase will be funded with company cash and incremental debt from funds managed by Apollo, with USA TODAY Co. amending its senior secured facility to SOFR plus a 4.5% margin with a 150-basis-point floor.
  • USA TODAY Co. says the financing lowers its interest rate by 50 basis points and it expects the acquisition to be accretive to earnings and cash flow.
  • The transaction is subject to customary closing conditions, terms will not be disclosed, and completion is anticipated at the end of the month.