By Devika Patel
Knoxville, Tenn., Jan. 29 – Lee Enterprises, Inc. negotiated an approximately $576 million long-term debt financing from Berkshire Hathaway to fund the company’s acquisition of BH Media Group’s publications and The Buffalo News for $140 million in cash, according to a press release.
The debt has a 9% coupon and matures in 25 years.
With a stronger growth profile and a more flexible balance sheet, Lee will be able to de-lever more quickly over the long term; Lee will continue to prioritize deleveraging, including strategically monetizing noncore assets, according to the release.
Lee is a Davenport, Iowa-based newspaper publisher.
| Issuer: | Lee Enterprises, Inc.
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| Issue: | Debt financing
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| Amount: | $576 million
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| Maturity: | 25 years
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| Coupon: | 9%
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| Investor: | Berkshire Hathaway
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| Announcement date: | Jan. 29
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| Distribution: | Private placement
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