Trinity Mirror has agreed to make a £41.2m pension payment as part of its acquisition of Northern & Shell, the publisher of the Daily Express, Daily Star and OK!.
On top of this upfront lump sum, Trinity Mirror has also agreed to a recovery plan through to 2027 which will see the Northern & Shell defined benefit (DB) pension schemes receive £29.2m over the next nine years.
These schemes had a total deficit of £31.3m as of 31 December 2016, and were a key issue that held up the deal between the two companies, after discussions first began three years ago.
Northern & Shell has three DB pension schemes. Two were closed to future accrual in 2008 and the third scheme in 2010.
Trinity Mirror has also three final salary schemes, which all closed to future accrual in 2010.
The acquisition of Northern & Shell's publishing assets was agreed for a total purchase price of £126.7m.
Trinity Mirror will fund the cash element of the purchase price, the contributions to the pension schemes and transaction costs by using of a new £75m amortising term loan facility.
maria.espadinha@ft.com
