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Lee Enterprises wraps $94 million refinancing with Berkshire Hathaway
By Lisa Kerner
Charlotte, N.C., May 7 - Lee Enterprises, Inc. completed its refinancing of $94 million of long-term debt known as the Pulitzer notes with Berkshire Hathaway Inc. on May 1, according to an 8-K filing with the Securities and Exchange Commission.
The refinancing reduces the interest to a fixed rate of 9%, extends the maturity from December 2015 to April 2017 and involves no fees.
As previously reported, the notes' 11.3% interest rate had been scheduled to increase to 12.05% in January 2014 and to 12.8% in January 2015.
Lee may voluntarily prepay principal amounts outstanding under the new notes at any time, in whole or in part, without premium or penalty, with certain exceptions, the filing said.
The new Pulitzer notes provide for mandatory scheduled prepayments totaling $6.4 million annually beginning in the 2014 fiscal year.
Lee is required to make mandatory prepayments under certain other conditions, such as from the net proceeds of asset sales.
In addition, Lee is required to accelerate future payments in the amount of its quarterly excess cash flow.
The final maturity of the notes is in April 2017.
Pulitzer Inc., a wholly owned subsidiary of Lee, will be a co-borrower in the new facility with its subsidiary St. Louis Post-Dispatch LLC. Pulitzer was previously a guarantor of the Pulitzer notes.
Davenport, Iowa-based Lee is a print and digital provider of local news, information and advertising.
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