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Lee Enterprises, Incorporated Message Board

  • jannnvermeulen jannnvermeulen Aug 16, 2012 5:26 AM Flag

    Open market buy v.s. second lien award

    In the 8-K filed on January 30, the company states:

    "On the Effective Date, the Second Lien Lenders received their pro rata share of the Company’s issuance of 6,743,640 shares of its Common Stock, par value $0.01 per share (the “Common Stock Issuance”), amounting to approximately 13% of outstanding shares on a pro forma basis on such date."

    Buffett declared 1.6 M shares on June 5th for the period ended March 30th. Back then I asked whether it could actually have been a decline from the 3.275M shares he should have received from his $85M stake in the second lien. I remember reading somewhere that he added $15M later on. That would bring an additional .58M stake, for a total of 3.83M.

    But that's all very difficult to reconcile with the last filing. He now declares holding 3.225M shares.

    If it's the same position, why does his position go up from March 30 to June 30, while all shares have been granted on January 30? Additional purchased of second lien should come exempt of equity since the Effective Date has long passed. Why would the original awardee sell the stocks with the bonds instead of keeping the stocks for themselves? And why the discrepancy in numbers?

    If it's a different position, does Buffett now own a cumulative 7M stake in LEE? Why is it then not disclosed as such?

    Constructive opinions are always welcome. Thank you!

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3.74+0.06(+1.63%)Dec 26 4:02 PMEST

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