Without fanfare, regulatory filings indicate Alden Global Capital completed its $633 million purchase of Tribune Publishing late Monday, taking the Chicago-based newspaper chain private and adding the Chicago Tribune and other major dailies to the hedge fund’s growing portfolio.
The Chicago Tribune reports Tribune Publishing CEO Terry Jimenez received $1.734 million in equity compensation, while three other non-Alden board members and the company’s interim CFO also received payouts as a result of the merger, according to the beneficial ownership forms filed with the Securities and Exchange Commission.
The $17.25-per-share buyout was approved Friday by Tribune Publishing shareholders, with 81.28% of the shares not held by Alden voting in favor of the transaction, surpassing the required two-thirds threshold. Tribune Publishing, which trades on the Nasdaq under the symbol TPCO, will be delisted as a result of the transaction, according to the SEC filings.
A New York-based hedge fund with a reputation as one of the industry’s most aggressive cost-cutters, Alden becomes the second-largest newspaper owner in the U.S. behind Gannett. In addition to Tribune Publishing, Alden owns MediaNews Group, whose larger newspapers include the Denver Post, San Jose (California) Mercury News and the St. Paul (Minnesota) Pioneer Press.
In addition to the Chicago Tribune, Tribune Publishing owns The Baltimore Sun; the Hartford (Connecticut) Courant; the Orlando (Florida) Sentinel; the South Florida Sun Sentinel; the New York Daily News; the Capital Gazette in Annapolis, Maryland; The Morning Call in Allentown, Pennsylvania; the Daily Press in Newport News, Virginia; and The Virginian-Pilot in Norfolk, Virginia.
While Alden’s $633 million offer is fully financed, the hedge fund can use Tribune Publishing’s cash on hand and reserved the right to have the newspaper chain take on up to $375 million in debt to close the deal, according to its equity commitment letter filed with the SEC.
Tribune Publishing is debt free, profitable and has more than $250 million in cash.
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