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Portfolio Update

Another Spin Move

By Elliott H. Gue, on Jul. 28, 2017

Wealth Builders Portfolio holding TEGNA (NYSE: TGNA), which owns or services 46 local television stations and operates Cars.com and other online media properties, came into being when the former Gannet Company spun off its newspaper publishing assets. We sold our shares in the new Gannet Co (NYSE: GCI) on July 3, 2015, when the stock traded above 50 percent higher than it does today.

At the end of May, the company completed the latest step in a series of strategic moves that aim to improve its balance sheet and refocus on its core television assets: the spin-off of Cars.com (NYSE: CARS), with investors receiving one share in the internet company for every three shares of TEGNA. As part of the transaction, the parent received a one-time, tax-free distribution of $650 million that the company used to pay down its revolving credit facility and reduce its leverage to 3.5 times operating cash flow.

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