Media General plans to pay down notes using asset sale proceeds

By Angela McDaniels

Tacoma, Wash., May 17 - Media General Inc. agreed to sell most of its newspapers to Berkshire Hathaway Inc. and will use proceeds to pay down its senior secured notes, according to a company news release.

The company agreed to sell all of its newspapers except for its Tampa group to Berkshire Hathaway subsidiary BH Media Group for $142 million.

After transaction fees and retaining $25 million of cash, proceeds from the sale will be offered toward the repayment of existing senior secured notes, and any remaining funds will be used to pay down the company's planned $400 million first-lien term loan due 2020 at par.

The sale is expected to close June 25.

The company is in discussions with other prospective buyers for its Tampa print assets.

Media General is a Richmond, Va.-based provider of news, information and entertainment across multiple media platforms.

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