Business News

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

Monday 07. December 2009 - Newspaper publisher A. H. Belo Corporation (NYSE:AHC) said today that the Company and its bank syndicate have mutually agreed to amend the Company's revolving credit facility effective December 3, 2009.

The amendment extends the credit facility’s maturity date to September 30, 2012, reduces the facility size to $25 million and releases certain real property securing the facility. The amended facility remains subject to a borrowing base. If borrowing capacity under the amended facility is less than $17.5 million, then a fixed charge coverage ratio covenant of 1:1 will apply. Other usual and customary covenants were carried forward.

“As of December 3, A. H. Belo had no borrowings under its revolving credit facility,” said Robert W. Decherd, chairman, president and Chief Executive Officer. “The amended facility allows A. H. Belo to focus on managing its business and provides the financial flexibility we need going forward. A. H. Belo will continue to emphasize revenue initiatives, expense management and maximizing cash from operations.”