Overview
- Under the agreement, Lee will issue 15.38 million new shares, with Hoffmann purchasing $35 million and other investors $15 million, giving him about 52.1% ownership.
- Hoffmann will become board chair as longtime CEO Kevin Mowbray retires, and COO Nathan Bekke is appointed interim CEO during an external search for a permanent leader.
- The rate on roughly $455 million of debt falls from 9% to 5% for five years under a lender concession tied to the capital raise, easing pressure on the balance sheet.
- Lee’s shares rose more than 20% to close at $4.50 following the announcement, reflecting investor approval of the recapitalization and leadership change.
- The publisher of 70-plus newspapers across more than two dozen states gains a financial lifeline as Hoffmann extends his recent spree of acquisitions in local media.