Lee Enterprises Announces Strategic Investment and Board-Led Transition

Core Viewpoint - Lee Enterprises has entered into a definitive stock purchase agreement for a $50 million strategic equity investment, aimed at strengthening its financial and governance foundation as it transitions into its next phase [1][2]. Investment Details - The investment consists of a private placement of common stock at an investment price of $3.25 per share, with David Hoffmann leading the investment by committing a minimum of $20 million, while other existing investors contribute the remaining $30 million [2]. - Hoffmann has committed approximately $35 million at signing, with additional investors committing around $15 million, and he will backstop the capital raise by purchasing any remaining shares not acquired by other investors [2]. Financial Impact - The closing of the $50 million investment is expected to facilitate an amendment to the Company's existing credit facility, reducing the annual interest rate on approximately $455.5 million of long-term debt from 9% to 5% for five years, significantly improving the capital structure and cash flow outlook [3]. Board Decisions - The Company's board of directors unanimously approved the transaction after a comprehensive review, determining that strengthening the balance sheet and implementing leadership changes are essential for long-term value creation [4]. - Mary Junck, Chair of the Board, emphasized the importance of this decisive action for improving the Company's position [5]. Leadership Changes - Concurrently with the investment, Kevin Mowbray, the President and CEO, announced his retirement, with Nathan Bekke expected to serve as Interim CEO while a search for a permanent CEO is initiated [6]. Advisory Support - Oppenheimer & Co. Inc., Kirkland & Ellis LLP, and Lane & Waterman LLP served as exclusive financial and legal advisors to Lee Enterprises, while Stifel and Lathrop GPM LLP advised Hoffmann [7]. Shareholder Approval - The issuance and sale of shares are subject to customary closing conditions, including stockholder approval at a special meeting expected in the first quarter of 2026 [8].