Gannett Shares rose as much as 11.5%

Shares of Gannett (GCI), the owner of USA Today and other newspapers rose as much as 11.5% at one point Tuesday morning after the company announced a share repurchase plan and an amended credit agreement. The company announced a $100 million stock buyback program.

Chart for Gannett Co Inc

The company announced that its board of directors had authorized a $100 million repurchase plan between now and the end of the year. That represented more than 15% of the company’s market cap before the recent run this morning.

Michael Reed, the CEO, and chairman of Gannett said in a statement: “We remain confident in our strategy and believe that our current stock price represents a significant discount to the intrinsic value of the company and its operating units.”

Gannett also announced a change to its five-year senior secured credit agreement in order to change the interest rate on the credit from London interbank offered rate (LIBOR), which is being phased out as a benchmark loan rate, to its replacement, secured overnight financing rate (SOFR).

Written by Maryam Nawaz

MPhil International Relations (Specialization in International Politics and Economy)

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