Gabelli & Co Maintains Buy on Lee Enterprises

Gabelli & Co reiterates its Buy rating on Lee Enterprises, Inc. LEE as the company advanced toward completing a previously announced refinancing. Gabelli says, “On Friday evening, Lee took another step toward completing a previously announced refinancing. Under terms of the agreement, holders of the existing Pulitzer notes ($126 mm balance) will amend and extend the debt to December 2015. With the nearest maturities four years out, we project that LEE should be able to generate about $250-300 mm of free cash flow for debt repayment over the period, paving the way for another financing when leverage is lower and credit markets may be more accommodating.” LEE closed at $0.53 per share on Friday.