Media General Commences Tender Offer for 11 3/4 % Senior Secured Notes
RICHMOND, Va., June 29, 2012 /PRNewswire/ -- Media General, Inc. (NYSE: MEG) commenced a cash tender offer to purchase up to $45,214,000 aggregate principal amount of its 11 3/4 % Senior Secured Notes due 2017 (the "Notes"). The tender offer will expire at 5:00 p.m., New York City time, on July 30, 2012, unless extended by Media General in its sole discretion. The terms and conditions of the tender offer are described in an Offer to Purchase, dated June 29, 2012, and a related Letter of Transmittal.
On June 25, 2012, 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, subject to adjustment for working capital and other items. The company is obligated to use a portion of the net proceeds from the sale, as determined under the Amended and Restated Intercreditor and Collateral Agency Agreement dated as of February 12, 2010, among the company, the Bank of New York Mellon, as trustee, BH Finance LLC (as successor to Bank of America, N.A.), as bank agent and Wells Fargo Bank, N.A. (as successor to Bank of America, N.A.), as collateral agent and the Indenture dated as of February 12, 2010 (the "Indenture") among the Company, the Guarantors party thereto and The Bank of New York Mellon, as trustee, to offer to purchase a portion of the outstanding Notes.
In accordance with the Indenture, and subject to the terms and conditions of the Offer to Purchase, Media General is offering to purchase Notes at a purchase price of 100% of the principal amount thereof, plus accrued and unpaid interest to the date of payment. If the aggregate principal amount of the Notes validly tendered (and not validly withdrawn) exceeds $45,214,000, the company will accept for purchase a pro-rata portion of such Notes so that the aggregate principal amount of the Notes purchased does not exceed $45,214,000. Tenders may be withdrawn at any time prior to 5:00 p.m., New York City time, on July 30, 2012, subject to the terms and conditions of the Offer to Purchase.
This news release is for informational purposes only and is neither an offer to purchase nor a solicitation of an offer to sell any Notes. The complete terms and conditions of the tender offer are set out in the Offer to Purchase and related Letter of Transmittal.
This news release contains forward-looking statements that are subject to various risks and uncertainties and should be understood in the context of the company's publicly available reports filed with the Securities and Exchange Commission. Media General's future performance could differ materially from its current expectations.
About Media General
Media General is a leading provider of news, information and entertainment across broadcast television, digital media and mobile platforms, serving consumers and advertisers in strong local markets, primarily in the Southeastern United States. The company's broadcast operations include 18 network-affiliated television stations and their associated digital and mobile media services. Media General's network affiliations include eight NBC stations, eight CBS stations, one ABC station and one CW station. Six of its 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 got its start in 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.
SOURCE Media General, Inc.