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Lee Enterprises, Incorporated Message Board

huh1282 4 posts  |  Last Activity: Mar 23, 2014 3:12 PM Member since: Apr 24, 2006
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  • Reply to

    Refinance

    by perham1 Mar 22, 2014 12:01 PM
    huh1282 huh1282 Mar 23, 2014 3:12 PM Flag

    I will nominate this management as the most dedicated and competent in the media industry. They have threaded the needle, and brought the company to the point where long term survival, if not raging success, is guaranteed (with continued blocking & tackling). While there may not be any more fast money in this stock, you would have a hard time finding a better long term investment, I think.

  • Reply to

    refinancing news

    by pjv2xyw9dww4b5 Feb 3, 2014 9:19 AM
    huh1282 huh1282 Feb 4, 2014 9:37 AM Flag

    There does appear to be some risk in the way this is structured, but the risk is limited, as you point out. And it wouldn't be fair to pull out one aspect of the deal and say "why didn't you get a better deal on this aspect" when it is all part of the overall package. Again, I think the extension to 2022 is the key headline, and they did what they had to do on the warrants to get that long of an extension (with a small reduction in interest rate to boot). If they stay on their current trajectory, they will have no problem refinancing what little debt remains in 2022, and the warrants will be a relatively meaningless footnote at that point.

  • Reply to

    refinancing news

    by pjv2xyw9dww4b5 Feb 3, 2014 9:19 AM
    huh1282 huh1282 Feb 3, 2014 10:16 AM Flag

    The lenders are accepting market price for the warrants, currently around $4. The company is capping it at $4.19. That sounds like a fair compromise. The extension to 2022 is what will allow this company to become a "normal" stock over the next several years, as long as they keep executing.

  • Reply to

    refinancing news

    by pjv2xyw9dww4b5 Feb 3, 2014 9:19 AM
    huh1282 huh1282 Feb 3, 2014 9:54 AM Flag

    It's a shame about the warrants, but I am sure they got the best deal they could. The debt markets must still be very risk averse. On the positive side, extension to 2022 is huge, which will probably allow a better 1st lien refinancing than they otherwise would have gotten, and they save an extra $5 million/yr in interest expense starting in a couple months. The other positive is that the warrants are not at a discount to the current market price. Getting lenders to accept $4 warrants was a wild pipe dream just a couple of years ago.

LEE
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