Wingspan Investment Management Makes 13G Filing Disclosing 9.1% Passive Stake in Lee Enterprises

NEW YORK, Feb. 17, 2015 /PRNewswire/ -- Wingspan Investment Management, LP ("Wingspan"), a New York-based investment firm, today filed a beneficial ownership report on Schedule 13G with the United States Securities and Exchange Commission to disclose its beneficial ownership of 4,980,156 shares of Lee Enterprises ("Lee" or the "Company") (NYSE: LEE) for an approximate 9.1% passive stake in the Company.

Stable cash flows and 2015 revenue growth

Wingspan is a strong supporter of management's current financial strategy of using substantially all excess cash flows to reduce leverage.  Wingspan believes that the combination of a) six-plus prior years of strong and stable cash flows and b) no material debt maturities until 2022 is expected to provide significant runway for aggressive debt reduction and continued enhancement of equity value.  Wingspan expects Lee to be able to continue to produce levered free cash flow of roughly $80 million per annum compared to its roughly $160 million market capitalization today, implying a 50% levered free cash flow yield to the equity.  Wingspan believes that Lee's long-dated debt maturity schedule and stable cash flows warrant levered free cash flow yields closer to 20%, in line with newspaper and other old media companies, which would imply a Lee share price of $7.34/share.

In addition, with the help of industry leading subscription revenue growth and continued strength in digital revenue growth, Wingspan believes roughly 50% of Lee's revenues can be expected to grow in 2015 and will help Lee to achieve its stated goal of strong and stable cash flows in 2015 and beyond.

Newspaper publishing industry consolidation

Most importantly, while the strong cash flow, the growing revenue components, and the long-dated debt maturity schedule of Lee are attractive characteristics for any company in any industry, Wingspan believes them to be particularly valuable in the current environment of industry consolidation that the newspaper publishing industry finds itself in today.  Wingspan has full trust that Lee's experienced management team would evaluate all options and make prudent decisions for the benefit of its shareholders.

Established relationship between Lee and Wingspan

Wingspan and its investment team have an established history with Lee as an investor in both its debt and equity.  Prior to forming Wingspan, while at a prior employer, members of the investment team of Wingspan played an integral role in Lee's restructuring process completed in 2012.  In 2014, Wingspan was an anchor investor in Lee's successful refinancing and became one of Lee's largest shareholders as shown in today's filing.

About Wingspan Investment Management, LP
Wingspan Investment Management, LP is a New York-based investment firm founded in 2013 by Buck Ratchford.  Prior to founding Wingspan, Mr. Ratchford was a Partner at Goldman Sachs and the Head Portfolio Manager of a proprietary investing business within Goldman Sachs' Global Credit division from 2003-2011.  Wingspan's long/short investing strategy focuses on leveraged corporate capital structures and targets opportunities across performing, stressed, and distressed credit as well as special situation equities.  The Fund's strategy is global in scope with an emphasis on North American and European markets.

This press release is for general informational purposes only.  It does not have regard to the specific investment objective, financial situation, suitability or particular need of any specific person who may receive this press release, and should not be taken as advice on the merits of any investment decision.  The views expressed herein represent the opinions of Wingspan, and should not be viewed as indicating the support of any other party, including the Company.  There is no assurance or guarantee with respect to the prices at which any securities of the Company will trade, and such securities may not trade at prices that may be implied herein.  The projections set forth herein are based on assumptions that Wingspan believes to be reasonable, but there can be no assurance or guarantee that actual results or performance of the Company will not differ, and such differences may be material.  Wingspan reserves the right to change any of its opinions expressed herein at any time as it deems appropriate, and disclaims any obligation to update the information contained herein including, without limitation, the manner or type of any Wingspan investment.

Private investment funds advised by Wingspan currently hold shares of the Company's common stock.  Wingspan and such investment funds reserve the right to take any actions with respect to their investments in the Company as they may deem appropriate.

SOURCE Wingspan Investment Management, LP