Lee Enterprises to repay $5 million of term loan at par via asset sale

By Susanna Moon

Chicago, Sept. 2 – Lee Enterprises, Inc. said it will use proceeds of about $5 million from the sale of assets to pay down debt under its second-lien term loan at par.

Lee Enterprises will sell its land and building in Napa, Calif., which is the headquarters of the Napa Valley Register, according to a company press release.

Sales of Pulitzer assets provide the company with the opportunity to prepay the second-lien term loan at par and reduce its highest rate debt without incurring call premiums, the press release noted.

Mayo said the Napa real estate sale is part of the company’s ongoing real estate monetization program. Real estate valued at more than $10 million is being listed for sale or is under contract, the press release noted.

“As we continue to transform our business through consolidation, outsourcing and other means, we have excess real estate assets in certain markets,” the company’s chief financial officer and treasurer Ron Mayo said in the press release.

“Monetizing those assets provides us with the capital to reduce debt and invest in our digital transformation as we move forward.”

Lee is a Davenport, Iowa-based newspaper publisher.

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