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Investors helped Herald Media to Cash Out
Some investment firms have helped Herald Media Inc. buy a block of suburban newspapers in Greater Boston. They want to cash out their remaining investment. According to Boston Herald sources, it will seek other lenders to replace the investment from the three firms -- Audax Group, Weston Presidio, and Halyard Capital, a subsidiary of the Bank of Montreal -- over the next two months. The firms financed Herald Media's purchase of a chain of 100 suburban newspapers, mostly weeklies, from Fidelity Investments in 2001.
In July 2004, Boston Herald publisher Patrick J. Purcell refinanced $155 million of the original debt through a package with Wachovia Corp. That allowed him to repay about 85 percent of the principal investment to Audax, Weston Presidio, and Halyard. Purcell declined to say how much Herald still owes those firms. He said the investors always had a ''time horizon" of three to five years on the Herald deal. boston.com reports:
The Herald said in a press release that it had retained Wachovia Capital Markets LLC and Dirks, Van Essen & Murray as financial advisers to focus on ''recapitalizing the company's existing equity and debt and to explore new strategic opportunities. "Newspaper analyst John Morton, president of Morton Research Inc., Silver Spring, Md., said the investors may have decided the economic climate for newspapers is weakening.
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