Lee Enterprises $1.55 billion credit facility likely February business

By Sara Rosenberg

New York, Feb. 1 - Lee Enterprises Inc. is expected to launch a new $1.55 billion credit facility sometime this month, according to a market source, although specific timing of the bank meeting is not yet available. Deutsche Bank and SunTrust are the lead banks on the deal, with Deutsche the left lead.

The facility consists of a $450 million seven-year revolver, an $800 million seven-year term loan A and a $300 million eight-year term loan B, the source said.

Proceeds will be used to help finance the acquisition of Pulitzer Inc. for a cash purchase price of $64 per share, with enterprise value totaling $1.46 billion.

"Although this transaction takes Lee's initial level of debt higher than it's been historically, we are confident that the combined cash flow of the business will enable us to return quickly to an investment-grade profile," said Mary Junck, chairman and chief executive officer of Lee, in a recent news release.

The transaction is subject to customary closing conditions, including regulatory clearances and approval by Pulitzer shareholders. The transaction is expected to close in the second quarter of calendar 2005.

Lee Enterprises is a Davenport, Iowa, newspaper publisher. Pulitzer is a St. Louis publishing company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.