McClatchy plans discounted debt exchange

McClatchy Co. announced Thursday its plans to exchange $1.5 billion in notes at a steep discount. Holders would receive up to $60 million in cash and as much as $175 million in 5-year notes with a 15.75 percent yield in return for exchanging the debt.
McClatchy went into to debt to expand itself before the recession hit, bringing it to roughly $2 billion in deficit.
Its financial struggles have also been attributed to declining advertising revenue. California and Florida, two states the organization has a major presence in, have both been heavily hit by the collapsing housing market.
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