McClatchy gains wiggle room

Newspaper publisher McClatchy Co. has restructured its agreement with lenders in response to declines in advertising revenue.

McClatchy said Friday the amendment to its $1.175 billion credit facility will give it greater flexibility in two key areas - allowable leverage and interest coverage ratios.

In return, McClatchy says it is offering banks new security in collateral and higher pricing.

Pat Talamantes, the company's chief financial officer, says advertising revenue is being hurt by an economic downturn nationwide and the outlook for 2009 makes the new agreement necessary.

Last week, the company slashed 1,150 jobs because of the advertising woes, its second major round of reductions in three months