The baculovirus late expression factor LEF-5 has a zinc ribbon that is homologous to a domain in the eukaryotic transcription elongation factor SII. To determine whether LEF-5 is an elongation factor, we purified it from a bacterial overexpression system and added it to purified baculovirus RNA polymerase. LEF-5 increased transcription from both late and very late viral promoters. Two acidic residues within the zinc ribbon were essential for stimulation. Unlike SII, however, LEF-5 did not appear to enable RNA polymerase to escape from intrinsic pause sites. Furthermore, LEF-5 did not increase transcription in the presence of small DNA-binding ligands that inhibit elongation in other systems or viral DNA-binding proteins which inhibit the baculovirus RNA polymerase. Exonuclease activity assays revealed that baculovirus RNA polymerase has an intrinsic exonuclease activity, but this was not increased by the addition of LEF-5. Initiation assays and elongation assays using heparin to prevent reinitiation indicated that LEF-5 was active only in the absence of heparin. Taken together, these results suggest that LEF-5 functions as an initiation factor and not as an elongation factor.The transcription of baculovirus late genes requires 19 different viral-encoded proteins, called LEFs (late expression factors). One of these is LEF-5, which has significant sequence homology to the C-terminal domain of the eukaryotic transcription factor SII (also known as TFIIS). SII is an elongation factor, but unlike other elongation factors, it does not stimulate the rate of transcription elongation (reviewed in reference 34). Rather, it increases the ability of RNA polymerase II (Pol II) to synthesize long RNA transcripts (13,28,33). It does so by restarting Pol II after it becomes arrested. In the arrested state, Pol II is still engaged in a ternary complex but is unable to extend, possibly because the active site has lost contact with the 3Ј end of the RNA. SII stimulates the RNA cleavage activity of Pol II, which produces a new 3Ј OH within the active site (17,20,27). Cleavage of nascent transcripts allows a stalled polymerase to back up and attempt to read through blockages repeatedly until it successfully extends beyond the arrest site (13, 29).SII contains three major structural domains, an N-terminal domain of unknown function, a middle domain that binds to RNA Pol II, and the C-terminal zinc ribbon that binds to nucleic acids (1). The zinc ribbon domain of SII contains several residues that are essential for function (15,24,25). Four invariant cysteine residues chelate zinc and form the ribbon structure. An Asp-Glu dipeptide in the loop of the ribbon participates in metal binding within the RNA Pol II active site, and a conserved tryptophan or phenylalanine interacts with RNA through stacking interactions.LEF-5 proteins from 11 different baculoviruses have been sequenced, and all of these proteins contain residues capable of forming a C-terminal zinc ribbon with a central Asp-Glu dipeptide (10). But the LEF-5 proteins also have...