Lee Enterprises granted interim access to $20 million of DIP loan

By Caroline Salls

Pittsburgh, Dec. 13 - Lee Enterprises Inc. received interim access to $20 million of its proposed $40 million of debtor-in-possession financing, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

The final hearing is scheduled for Jan. 6.

Under the DIP loan commitment, Deutsche Bank Securities Inc. and Goldman Sachs Lending Partners LLC will act as joint lead arrangers and joint bookrunners, and Deutsche Bank will be the administrative agent.

The $40 million revolver will provide additional liquidity to Lee and its subsidiaries during the restructuring process and will be converted into a revolver under an amended credit agreement when Lee emerges from bankruptcy.

The revolving credit facility is not expected to be drawn at closing.

Interest, when the loan is used, will be Libor plus 550 bps, with a 1.25% Libor floor.

The DIP loan will mature on the earliest of six months from the bankruptcy filing, March 31 and the plan effective date.

In addition, the court scheduled a combined hearing on approval of the company's disclosure statement and pre-packaged plan of reorganization for Jan. 23.

Lee, a Davenport, Iowa-based print and digital provider of local news, information and advertising, filed for bankruptcy on Dec. 12. The Chapter 11 case number is 11-13918.

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