Lee Enterprises

Lee Enterprise stock nearly doubled in price to $1.71 a share earlier this week after news the company had received approval to exit bankruptcy and complete its planned debt refinancing.

The Davenport-based publisher of 48 newspapers, including the Quad City Times, filed for voluntary bankruptcy December 12, 2011 in order to get a small group of lenders bound to terms of the refinancing.

Lee Enterprises -- owner of the Quad City Times and 47 other daily newspapers -- earned $14.5 million in its first quarter ended December 25 despite a 4 percent drop in revenues for the period.

The 32 cents per share in earnings compares to net income per share of 42 cents in the first quarter of 2011. Revenues fell from $207.7 million in the first quarter of last year to $199.6 million this year.

The paid circulation of the Sunday Quad City Times fell below 60,000 in 2011, a 15 percent decline from five years ago.

According to figures from the Lee Enterprise, Inc. 10K (annual report) filings, paid circulation of the Sunday Quad City Times has fallen from 68,562 in 2007 to 59,482 in 2011. Ten years ago, the Sunday paper's circulation was just above 71,000.

As it announced a week ago, Lee Enterprises -- owner of the Quad City Times and Muscatine Journal -- filed Monday (12/12) for voluntary Chapter 11 bankruptcy protection in order to complete the refinancing of its nearly $1 billion debt.

The company said last week it would file the "prepackaged" bankruptcy after failing to obtain the consent of 6 percent of its lenders to the refinancing deal.

Lee Enterprises -- owner of the Quad City Times and Muscatine Journal -- says it plans to file a "prepackaged" voluntary Chapter 11 bankruptcy plan by Dec. 12 as it moves to finalize a debt restructuring announced in September.

The newspaper chain said it wasn't able to get about 6 percent of its senior lenders to agree to the restructuring plan and needed to use the bankruptcy process to complete the refinancing deal. Lee's properties in Tucson, AZ and Madison, WI, are not part of the planned filing.

Lee Enterprises – owner of the Quad City Times and Muscatine Journal – posted a $147-million loss in fiscal 2011, compared to a $46-million profit the year earlier.

The newspaper chain headquartered in Davenport reported a 20 cents per share loss in its fourth quarter ended Sept. 25, and a fiscal 2011 loss of $3.27 per share.

As part of a plan to refinance its nearly $1 billion in debt, Lee Enterprises will give lenders 13 percent (6.744 million shares) of its common stock.

The deal announced Sept. 8 would give Lee more time to repay its long-term debt, largely the result of acquiring the St. Louis Post-Dispatch in 2005.

Lenders who will get the ownership share and a boost in interest on the refinanced debt include Goldman Sachs Lending Partners LLC, Franklin Templeton/Mutual Quest Fund and Monarch Master Funding Ltd.

Lee Enterprises -- owner of the Quad City Times -- rolled out paywalls for its Montana and Wyoming online newspaper sites August 1.

Even print newspaper subscribers will face charges for online access after a limit of between 15 to 20 page views a month. The charge for print subscribers ($1.95 to $2.95 per month) would be less than online only subscribers ($5 to $6.95 per month).

The online news sites' homepage, obituaries, ad content, calendars, photo galleries, classifieds and videos would not count toward the page view limits.

The Wall Street Journal is reporting Lee Enterprises (owner of the Quad City Times) is asking its lenders to exchange senior debt for debt with higher interest rates and later maturity.

The plan, according to the Journal, would give Lee more time to refinance its more than $1 billion in debt which comes due in April 2012.

Under the exchange, creditors Goldman Sachs Group Inc. and Monarch Alternative Capital, could end up owning about 13 percent of Lee, according to the Journal.

Lee Enterprises -- parent of the Quad City Times -- is again facing delisting from the New York Stock Exchange while pressure mounts on the newspaper chain to refinance its more than $1 billion in debt.

According to an article by Bloomberg Thursday (7/14), Lee is in talks with creditors Monach Alternative Capital LP and Goldman Sachs Group Inc. The newspaper publishing group reportedly is offering higher rates and equity interest in the company to refinance its debt, according to Bloomberg.