MNG touts endorsement on Gannett proposal

MNG Enterprises, also known as Digital First Media, says it has an outside investment firm saying MNG can come up with the financing to buy Gannett.

MNG, also known as Digital First Media, announced last week that Oaktree Capital Management, a subsidiary of Oaktree Capital Group, delivered a letter stating that Oaktree is highly confident in MNG’s ability to attain a debt financing package not less than $1.725 billion in connection with MNG’s proposed acquisition of Gannett.

“This financing would be sufficient to refinance the existing indebtedness of both MNG and Gannett, fully finance the $12.00 per share cash consideration payable to Gannett’s shareholders, and pay all related fees, costs and expenses in connection with the transaction,” said a statement from MNG.

“It’s time for Gannett’s Board of Directors to stop blocking value creation opportunities for its shareholders and engage with MNG,” said R. Joseph Fuchs, chairman of the board of MNG Enterprises.

Gannett confirmed receipt of the letter and issued a statement. “The letter that MNG has procured from Oaktree’s distressed debt fund, Oaktree Strategic Credit, more than two months after MNG launched its unsolicited proposal, does not represent a contractual commitment or a legal obligation, and is highly conditional,” the statement said.

“As a public company, Gannett’s board would engage with any party that makes a bona fide, credible proposal that appropriately values the company and is capable of being closed. Gannett has said in the past that MNG’s proposal fails that test, and the letter from Oaktree Strategic Credit does not alter the company’s assessment of MNG’s proposal,” the statement said.

News and Tech