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DAVENPORT, IA - Lee Enterprises , Inc. (NASDAQ:LEE), a major player in the newspaper publishing industry with annual revenue of $600.26M, has announced a significant agreement to bolster its short-term liquidity. The company disclosed on Monday that BH Finance LLC and BH Media Group, Inc. have agreed to waive the April 2025 interest and lease payments, respectively. According to InvestingPro analysis, Lee Enterprises operates with a significant debt burden, with total debt standing at $480.72M against a market capitalization of just $63.77M.
This decision, recorded in a recent 8-K filing with the Securities and Exchange Commission, follows a cybersecurity attack that led to a systems outage at Lee Enterprises. The financial strain of addressing the cybersecurity incident had previously led to the waiver of March 2025 payments by the company’s sole lender, BH Finance, and lessor, BH Media. InvestingPro data reveals the company’s challenging financial position, with a current ratio of 0.78 indicating that short-term obligations exceed liquid assets.
The latest waiver, known as the Second Covenant Waiver, will provide Lee Enterprises with an additional $3.7 million in capital. This relief is expected to assist the company in continuing its remediation efforts for the cybersecurity incident and support other operational needs.
Under the terms of the waiver, all deferred interest and lease payments will be added to the principal amount due under the existing Credit Agreement, with the due date set as per the original terms of the agreement. It is important to note that the waiver applies only to the April 2025 payments and does not affect any other terms or conditions of the Credit Agreement or Lease Agreement, both of which remain in full effect.
Lee Enterprises’ Vice President, Chief Financial Officer, and Treasurer, Timothy R. Millage, signed the SEC report, confirming the company’s compliance with the Securities Exchange Act of 1934. The company, headquartered in Davenport, Iowa, operates under the SIC code for Newspapers: Publishing or Publishing & Printing, indicating its primary business focus in the print media sector.
Investors and stakeholders of Lee Enterprises may view this waiver as a strategic move to manage the company’s liquidity during a challenging period. This information is based on the press release statement by Lee Enterprises. For comprehensive analysis of Lee Enterprises’ financial health and future prospects, including 8 additional exclusive ProTips and detailed valuation metrics, investors can access the full company research report on InvestingPro, part of their coverage of over 1,400 US stocks.
In other recent news, Lee Enterprises has extended its shareholder rights plan until March 27, 2026, following acquisition interest from The Hoffmann Family of Companies, which holds approximately 9.8% of Lee’s common stock. The board has not specified any decisions regarding the takeover interest but has offered to enter a confidentiality agreement with Hoffmann for a potential acquisition proposal. Additionally, Lee Enterprises reported a significant cybersecurity breach that led to a systems outage after a cyberattack on February 3, 2025. The attack disrupted operations, delaying print publication distribution and affecting online services, with financial repercussions still being assessed. Lee has activated its incident response team and notified law enforcement and regulatory bodies, while a forensic investigation continues. At the company’s recent annual shareholder meeting, shareholders approved executive compensation and amendments to the long-term incentive plan. The re-election of directors Mary E. Junck, Herbert W. Moloney III, and Kevin D. Mowbray was confirmed. BDO USA, P.C. was also ratified as the independent registered public accounting firm for the fiscal year ending in 2025.
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