Thursday, May 21, 2009

Good news on McClatchy debt

Today's news about McClatchy's deeply discounted debt swap is a big deal, for the company and the industry.

The story may seem a bit opaque to us non-financial types, but I read it as a move that significantly strengthens the company's ability to weather the recession and positions it well to continue transformation as economic activity resumes. Early returns from the market agreed; the stock's up nearly 20% as I write this early Thursday.

More as I learn more. Today I am celebrating a smart, innovative move by McClatchy management.

END OF THE DAY UPDATE: The market, at least, has made its opinion known. McClatchy stock (nyse:mni) was up 30% on 6.3 million shares, about eight times the average volume.

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