Media General Announces Exercise of Warrants by Berkshire Hathaway
RICHMOND, Va., Sept. 25, 2012 /PRNewswire/ -- Media General, Inc. (NYSE: MEG) announced today that Berkshire Hathaway Inc. (NYSE: BRK.A and BRK.B) has exercised its warrants to purchase 4,646,220 shares of the company's Class A common stock. The exercise price for these warrants was 1 cent per share. The warrants were issued as part of a new credit agreement that Media General and Berkshire Hathaway completed on May 24, 2012. Following Berkshire Hathaway's warrants exercise, Media General has 27,918,339 common shares outstanding, and Berkshire Hathaway's ownership represents 16.6% of the total. The shares issued are exempt from registration with the Securities and Exchange Commission because the transaction did not involve a public offering.
"Media General is pleased that Berkshire Hathaway has increased its overall investment in the company by exercising its warrants for the company's common stock," said Marshall N. Morton, president and chief executive officer. "This equity position enhances the partnership that began earlier this year when Berkshire Hathaway refinanced our bank debt. The new credit agreement addressed Media General's long-term capital needs and provided the company with significant financial and operating flexibility. We look forward to a long and constructive association with Berkshire Hathaway," said Mr. Morton.
Under the new credit agreement, Berkshire Hathaway provided Media General with a $400 million term loan that matures in May 2020 and a $45 million revolving credit line. Berkshire Hathaway also purchased the majority of Media General's newspapers on June 25, 2012.
About Media General
Media General is a leading provider of news, information and entertainment across 18 network-affiliated broadcast television stations and their associated digital media and mobile platforms. The company's stations serve consumers and advertisers in strong local markets, primarily in the Southeastern United States. Media General's network affiliates include eight NBC stations, eight CBS stations, one ABC station and one CW station. Six of the company's stations operate in the Top 40 markets in the United States. Media General's stations reach more than one-third of TV households in the Southeast and more than 8 percent of U.S. TV households. Media General entered the television business in 1955 when it launched WFLA-TV in Tampa, Florida, as an NBC affiliate. Today, WFLA is the company's largest TV station, operating in the 14th largest DMA in the United States. Media General continues to own The Tampa Tribune and its associated print properties and expects to enter into a transaction with one of several prospective buyers for the group.
Additional information about Media General is available on its web site www.mediageneral.com or by contacting Lou Anne J. Nabhan, Vice President-Corporate Communications, at (804) 649-6103 or email@example.com.
SOURCE Media General, Inc.