Media General buys back $200,000 11¾% notes through tender offer

By Angela McDaniels

Tacoma, Wash., Aug. 6 - Media General Inc. repurchased $200,000 of its 11¾% senior secured notes due 2017 through a tender offer, according to a company news release.

The company offered to purchase up to $45,214,000 principal amount of the notes. The tender offer began on June 29 and expired at 5 p.m. ET on July 30.

The company paid par plus accrued interest, and the purchased notes were canceled.

Following the purchase, $299.8 million of notes remains outstanding.

On June 25, Media General completed its sale of 63 daily and weekly newspapers to World Media Enterprises Inc., a subsidiary of Berkshire Hathaway, Inc., for $142 million in cash. The company was required to use a portion of the proceeds to offer to purchase a portion of the outstanding notes.

The company said it used the amount that the noteholders elected not to take to repay at par a portion of its term loan with BH Finance LLC, which is an affiliate of Berkshire Hathaway. The amount outstanding on that term loan is now $301 million.

The company has reduced the face value of its total long-term debt to $601 million from $700 million at the end of the second quarter, according to the news release.

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

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