In a press release, Lee refers to the junk bonds as "senior secured notes," explaining,
Lee isn't alone in its sudden pullback from the brink of bankruptcy, thanks to the frothy state of the high-yield bond market. One by one, distressed companies have been able to sell debt as money floods into the debt markets.
Radio broadcaster Emmis Communications Corp. recently convinced lenders to extend its debt maturities after threatening to raise new money in the bond market, according to a person familiar with the matter. Energy Future Holdings Corp., laboring under debt taken on during its 2007 leveraged buyout, is in the market with a similar transaction this month.
Lee intends to use the net proceeds from the offerings to refinance substantially all of its existing debt, which is due in April 2012. As of March 27, 2011, remaining principal under Lee's credit agreement totaled $878.8 million, and the remaining balance on its Pulitzer Notes totaled $147.0 million, which constitutes substantially all of its existing debt.The Post-Dispatch is the largest newspaper in the Lee chain; the company also owns the Arizona Daily Star, the Quad City Times and the Southern Illinoisan, which is based in Carbondale, Illinois.
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