Lee Enterprises refinances $94 million of notes with Berkshire Hathaway

By Lisa Kerner

Charlotte, N.C., April 30 - Lee Enterprises, Inc. announced it reached an agreement with Berkshire Hathaway Inc. to refinance $94 million of long-term debt known as the Pulitzer notes.

The refinancing reduces the interest to a fixed rate of 9%, extends the maturity from December 2015 to April 2017 and involves no fees.

The current interest rate of 11.3% had been scheduled to increase to 12.05% in January 2014 and 12.8% in January 2015, according to a company news release.

Lee expects the transaction to close in early May.

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.

The Pulitzer notes refinancing will include the addition of Lee's 50% interest in TNI Partners in Tucson as collateral.

Lee's current debt totals $893 million. The company said it reached the debt level anticipated in its plan of reorganization 18 months ahead of schedule in terms of debt repayment.

Davenport, Iowa-based Lee is a print and digital provider of local news, information and advertising.

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