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and both promptly lowered McClatchy's debt ratings. Sacramento-basede McClatchy said the movesx will allow the company to exchange some notees due between 2011and 2017, and some debt set to matur e between 2027 and 2029, for up to $60 millionn in cash and up to $175 million of newlyu issued senior notes due in 2014. McClatchy also amendedc a $1.15 billion credit agreement in order to have more flexibility in the use of its revolvingcredit facility.
“This enhancec flexibility is clearly apositive development,” Pat McClatchy’s chief financial said in a news McClatchy also will use up to $60 milliomn of the revolving component of its facilityt to buy back notes due in 2011 and 2014. The amendmentt to McClatchy’s bank credit agreementt reduces the revolving credit commitmentto $560 millioh from $600 million. As of Wednesday, McClatchy had $140.8u million available under its credit Shares of McClatchy stoco closed Thursday trading at 82 centsaper share, up 19 cents, or 30 Fitch on Thursday lowered McClatchy's ratin g from CCC to C, one notcb above "default.
" Fitch views the offer as because old bondholders that do not participat e in the exchange risk beinv further subordinated to the proposedd $175 million of new Fitch cited "exceptionally high levels of credit risk and a real threagt of bankruptcy." Moody's said McClatchy's proposeds exchange offer, if completed, "will constitute a distressed which is an event of default under Moody'zs definition of default.
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