UPDATE 1-Lee Enterprises amends credit terms; suspends dividend
(Recasts; adds details)
Oct 30 (Reuters) - Newspaper publisher Lee Enterprises Inc (LEE.N) said it amended its credit terms, hurt by the credit crisis and economic downturn, and suspended its dividend to facilitate the payment of bank debt.
The slowdown in the U.S. economy has deepened the wounds of newspaper publishers, particularly the classified employment advertising segment.
Lee said the key changes to the bank credit agreement includes a reduction in revolving credit facility to $375 million from $450 million.
The company said it also eliminated an unused incremental borrowing facility of $500 million.
"While we expect to be in compliance with our leverage ratio requirement at the end of our 2008 fiscal year in September, the credit agreement included a reduction in the ratio beginning in the December 2008 quarter," Chief Financial Officer Carl Schmidt said in a statement.
The company said it has repaid $463 million of debt and reduced net debt by an even larger $486 million since June 2005.
Shares of Lee closed at $3.29 Thursday on the New York Stock Exchange. (Reporting by Bijoy Koyitty in Bangalore; Editing by Jarshad Kakkrakandy)
© Thomson Reuters 2009 All rights reserved
Green Shoots / Brown Weeds
Jobless claims drop steeply
The number of U.S. workers filing new claims for jobless benefits fell sharply last week, although the data was distorted by an unusual pattern of layoffs in the automotive industry. Full Article
Bad weather hurts retail sales
Sales fell at many U.S. apparel retailers and warehouse club stores in June as the weak economy and cool, rainy weather dashed interest in summer shopping for consumers across the country. Full Article
