News Release


January 30, 2009

Newspaper Publisher A. H. Belo Corporation Announces Credit Agreement Amendment

DALLAS - Newspaper publisher A. H. Belo Corporation (NYSE: AHC) said today that its bank syndicate has approved an amendment to the Company's revolving credit facility. The amendment is effective January 30, 2009 and extends the maturity of the credit facility through April 30, 2011. The amended $50 million facility, which is subject to a borrowing base, provides the necessary working capital flexibility required to navigate through the current economic environment.

Among other things, the amendment:

  • Creates an asset-based revolving credit facility secured by all personal property assets of the Company and its active subsidiaries and certain specified real property
  • Establishes minimum quarterly adjusted EBITDA covenant requirements in 2009 and a fixed charge coverage ratio covenant in 2010 of 1.0 to 1.0
  • Allows capital expenditures and investments of up to $16.0 million per year (in total)
  • Allows A. H. Belo to pay dividends when the Company's fixed charge coverage ratio exceeds 1.2 to 1.0 and the aggregate availability under the credit facility exceeds $15.0 million
  • Sets pricing at LIBOR plus a spread of 375 basis points
  • Contains other covenants including limitations on indebtedness, liens, and asset sales

"A. H. Belo is focused on expense management and streamlining processes to operate more profitably," said Robert W. Decherd, chairman, president and Chief Executive Officer. "Given current trends in advertising revenues we are reviewing all facets of our operations with the goal of reducing costs whenever possible. This work does not occur overnight and I believe the amendment to our credit facility provides adequate financial flexibility and the necessary runway for A. H. Belo to realign its operations."

About A. H. Belo Corporation

A. H. Belo Corporation (NYSE: AHC) headquartered in Dallas, Texas, is a distinguished newspaper publishing and local news and information company that owns and operates four daily newspapers and a diverse group of Web sites. A. H. Belo publishes The Dallas Morning News, Texas' leading newspaper and winner of eight Pulitzer Prizes since 1986; The Providence Journal, the oldest continuously-published daily newspaper in the U.S. and winner of four Pulitzer Prizes; The Press-Enterprise (Riverside, CA), serving southern California's Inland Empire region and winner of one Pulitzer Prize; and the Denton Record-Chronicle. The Company publishes various specialty publications targeting niche audiences, young adults and the fast-growing Hispanic market. The Company's partnerships and/or investments include the Yahoo! Newspaper Consortium and Classified Ventures, owner of cars.com. A. H. Belo also owns direct mail and commercial printing businesses. Additional information is available at www.ahbelo.com or by contacting Maribel Correa, director/Investor Relations, at 214-977-2702.