Item 1.01. Entry into a Material Definitive Agreement.
On October 23, 2008, A. H. Belo Corporation entered into the First Amendment and
Waiver to its Credit Agreement dated as of February 4, 2008 with JPMorgan Chase
Bank, N.A., J.P. Morgan Securities Inc., Banc of America Securities LLC, Bank of
America, N.A. and certain other lenders party thereto (the "Credit Agreement").
Among other matters, the amendment to the Credit Agreement reduces the total
commitment amount from $100 million to $50 million; sets pricing at LIBOR plus a
spread of 250 basis points; waives compliance with the fixed charge coverage
ratio covenant through January 31, 2009, restricts the payment of cash dividends
during the waiver period, and provides the lenders with a security interest in
the Company's and its material subsidiaries' accounts receivable and inventory.
The amendment does not apply to the dividend declared on September 24, 2008 to
be paid on November 10, 2008.
The full text of the First Amendment and Waiver is filed as Exhibit 10.1 hereto
and is incorporated herein by reference. A copy of the press release announcing
the entry into this Credit Facility amendment and waiver is posted on the
Company's Web site (www.ahbelo.com) in the Investor Relations section, and a
copy of the press release is furnished with this report as Exhibit 99.1.
Item 8.01 Other Events.
On October 24, 2008, A. H. Belo Corporation's Chief Executive Officer, Robert
Decherd, sent a letter to shareholders that is posted on the Company's Web site
(www.ahbelo.com) in the Investor Relations section. Mr. Decherd also sent a
letter to employees of A.H. Belo. These letters outline the challenges that A.H.
Belo faces, and initiatives being undertaken in response to those challenges.
Copies of the shareholder letter and the employee letter are furnished with this
report as Exhibits 99.2 and 99.3, respectively.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
10.1 First Amendment and Waiver to the Credit Agreement dated as of
October 23, 2008
99.1 A. H. Belo Corporation Press Release dated October 24, 2008
99.2 A. H. Belo Corporation Shareholder Letter dated October 24, 2008
99.3 A. H. Belo Corporation Employee Letter dated October 24, 2008
|
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Date: October 24, 2008 A. H. BELO CORPORATION
By: /s/ Alison K. Engel
Alison K. Engel
Senior Vice President/Chief Financial
Officer