January 28, 2010 (FinancialWire) — The McClatchy Co. (NYSE: MNI) said it plans offer $875 million aggregate principal amount of senior notes, subject to market conditions and other factors. The notes would be due in 2017 and are to be offered and sold to qualified institutional buyers.

The notes will be senior obligations of McClatchy and will be guaranteed by each of McClatchy’s subsidiaries that guarantee indebtedness under McClatchy’s credit agreement. The notes and guarantees will be secured by a first priority lien on certain of McClatchy’s and the subsidiary guarantors’ assets, and will rank pari passu with liens granted under McClatchy’s credit agreement.

McClatchy plans to use the net proceeds of the offering to repay approximately $614 million under its credit agreement and to fund its cash tender offer for any and all of the approximately $166 million aggregate principal amount of its 7.125% notes due June 1, 2011 and approximately $24 million aggregate principal amount of its 15.75% senior notes due 2014.

California-based McClatchy is the third largest newspaper company in the United States, with 30 daily newspapers, 43 non-dailies, and direct marketing and direct mail operations.

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