Report: GateHouse Media Will Trigger IPO Next Week

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By: E&P Staff

GateHouse Media, the big community newspaper chain formerly known as Liberty Group Publishing, plans to go ahead with its initial public offering (IPO) of 11.5 million shares next week, The Associated Press reported Friday.

Executives of the Fairport, N.Y.-based company declined to comment because they are in the SEC-mandated “quiet period” before going public.

In an SEC filing Friday, GateHouse reiterated its intention to offer shares at a price expected to be in the range of $16 to $18.

Assuming a price of $17 per share, the prospectus said, the IPO would raise $178.4 million. The total would rise to $205.7 million if the underwriters, who are led by Goldman Sachs & Co. exercise fully their option to purchase an additional 1.7 million shares to cover overallotments.

GateHouse said it would use the proceeds to pay down debt and for general corporate purposes.

The SEC filing said the company had been approved for listing on the New York Stock Exchange under the symbol “GHS.”

GateHouse publishes 75 dailies with a combined paid circulation of approximately 405,000; 231 weekly papers with total paid circulation of approximately 620,000 and total free circulation of approximately 430,000; and 117 shoppers with total circulation of approximately 1.5 million.

GateHouse’s principal owner is New York City-based Fortress Investment Group LLC, which acquired the chain in June 2005.

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