After the bankruptcy auction ended, Philadelphia Media Holdings CEO Brian Tierney spoke with reporters. This is an unofficial transcript of a published recording of an interview with KYW newsradio 1060, joined in progress.
Brian Tierney: I think it was gonna be about 30 or 40 million and that was another thing. A year ago there was talk about a much higher debt level. The debt level seems to be appropriate. So a lot of things – it was an out-of-body experience at times and it was a heck of a fight, but I feel like the way things have worked out, in terms of the debt level not being as high as it was going to be, the commitment they’ve made to keep the jobs, and in the end $135 million, local Philadelphians really stepped up — as a lot of you guys know — in the last week and put together this thing which kind of stumbled about a week ago and you’ve got to thank people. It’s the only town or place in America where this is happening.
Mr. Tierney, we’re live on KYW now, if you can just recap briefly, sir, what was the lenders’ bid and what was your final bid?
Tierney: Steve, a few minutes ago the final bid was about $130 million on our side, 128, something like that, and they came in at $135 million, which is the highest price paid for a newspaper in quite a long time. But I think it shows the value of people have of these two papers.
And that’s on a profit last year of $15 million so it’s quite a multiple.
And what was the difference as far as the investors that you cobbled together versus the institutional money behind the lenders?
Tierney: The way they structured the debt. I mean, these were individuals who were coming at it because they love Philadelphia: Ron Perelman, Ray Perelman, Bill Graham, Bruce Toll, Ed Coryell and the carpenters union and of course David Haas. These people love Philadelphia, they stepped forward and they paid an unbelievable price. They really went out on a limb. But at a certain point, you say, ‘Gee these numbers are getting so high,’ and these lenders seem to really want it and they pledged that they’re going to do the right thing and I’m going to do everything I can to work with them because I love my employees and I want to do everything I can for them.
When you went into this today, did you think the papers would go for more than 100?
Tierney: No. The talk before was that this would be maybe $30 million in the building, maybe $50 million in the building, all told it’s about $100 million plus the building, so it’s a $135 million value. It’s an incredibly high price.
And the local folks who stepped forward also offered an incredibly high price. But it gets to a point you say, ‘That’s all that makes sense.’ So, I’m delighted that the debt level seems like it’s going to be appropriate, it’s half of what was discussed about a year ago, and the other thing I’m delighted is they’ve made a promise about the jobs. Because I really care deeply for every employee — Before they were talking about potentially terminating all the employees day one and then rehiring but we got them over that which I appreciate that. And they’ve made a commitment they’re gonna preserve – they say they’re gonna keep all the jobs. Obviously it’s a tough economy and there’s gonna be some level of issues they gotta deal with, but the commitment is [there] and they’re on record as doing that. So you gotta feel good about that.
What did you tell the lenders about what kind of paper the Philadelphia Inquirer and Daily News should be under their leadership?
Tierney: It’s not for me to tell them that. When it was over, we saw the numbers, all I did was walk into this room with about 100 people in it and I said, ‘Gentlemen, congratulations. And you are worthy adversaries and warriors [when] it’s time to fight, but now it’s time for me to say congratulations and to pledge to you I’ll do everything I can for a transition.’
