Ingersoll Offers to Buy Back Junk Bonds

Ingersoll Newspapers Inc. offered Thursday to buy back $158.6 million of high-yield junk bonds at prices sharply discounted from face value as the publishing company struggles to meet debt interest payments.

Ingersoll Newspapers is a holding company controlled by publisher Ralph Ingersoll. Its properties include the weekly St. Louis Suburban Journals, the Troy (N.Y.) Record and several other medium-sized papers.

The offer is for as much as 80% of $125 million in 13% reset notes issued by Community Newspapers Inc., also a unit of Ingersoll Publications Inc. The buyback would account for 55% of the principal amount.

Ingersoll Newspapers also is offering to buy as much as 51% of its $114.9 million of 14.75% discount debentures for 25% of the principal amount.