Lee gets another extension of covenant waiver on $306 million Pulitzer notes

By Susanna Moon

Chicago, Feb. 6 - Lee Enterprises, Inc. said it received another extension of a waiver of covenant conditions on the $306 million Pulitzer notes due April 2009 of its subsidiary, St. Louis Post-Dispatch LLC.

Lee said the waiver was extended until Feb. 13, while financing discussions continue.

The waiver had been set to expire Feb. 6, extended from Jan. 16.

"Lee and its lenders continue to work diligently to effect an extension of the Pulitzer notes and to make longer-term changes to our bank credit agreement to maintain the company's liquidity," Carl Schmidt, vice president, chief financial officer and treasurer for Lee, previously said in a press release.

Lee said it would be in technical default of several provisions under its applicable debt agreements without a waiver extension by holders of the notes.

An event of default would allow the noteholders to exercise certain remedies, including acceleration of the maturity of Lee's debt. The waiver contains a provision that will allow it to be withdrawn with 48 hours notice.

Lee Enterprises is a Davenport, Iowa-based publisher of local news, information and advertising.

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