Lee Enterprises, Inc. entered into a definitive stock purchase agreement on December 30 2025 for a $50 million strategic equity investment in its common stock. The private placement is priced at $3.25 per share and is led by investor David Hoffmann, who will commit approximately $35 million, with other existing shareholders contributing the remaining $15 million. The transaction provides the company with committed capital and strengthens its balance sheet.
The capital raise is a condition for amending Lee’s $455.5 million credit facility. The amendment will lower the facility’s interest rate from 9 % to 5 % for five years, creating an estimated $18 million in annual interest savings and up to $90 million in total savings over the life of the amendment. The reduction in debt servicing costs will free cash flow that can be reinvested in the company’s digital‑first strategy.
The deal also triggers a governance shift. David Hoffmann will become Chair of the Board upon closing, while President and CEO Kevin Mowbray will retire and Nathan Bekke will serve as Interim CEO. The leadership transition signals a renewed focus on strategic execution and financial discipline.
Management emphasized that the equity infusion will support ongoing digital transformation initiatives, including investments in data‑center infrastructure and AI‑driven content distribution. The company’s digital revenue now accounts for 53 % of total revenue, up from 21 % in fiscal 2020, and is projected to reach 90 % by fiscal 2030. The capital raise is intended to accelerate that trajectory while maintaining operational flexibility.
David Hoffmann said the transaction “strengthens the Company’s balance sheet and reflects the Board’s determination to take decisive action.” Mary Junck, current Chair, added that the deal “improves the Company’s capital structure, positioning it to execute and create long‑term value.” Kevin Mowbray noted that the company’s “third‑quarter results mark significant progress in our transformation strategy, driven by disciplined cost management and digital growth.”
The market reacted strongly to the announcement, with the stock surging 16.6 % on the day of the deal. Analysts cited the debt‑interest savings, the infusion of capital, and the leadership changes as key drivers of the positive reaction. The transaction is expected to enhance Lee’s financial resilience and support its long‑term digital strategy.
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