Media General cuts amount outstanding on term loan to $301 million

By Angela McDaniels

Tacoma, Wash., Aug. 6 - Media General Inc. reduced the amount outstanding on its term loan with Berkshire Hathaway, Inc. affiliate BH Finance LLC to $301 million from $445 million.

On June 25, Media General completed its sale of 63 daily and weekly newspapers to World Media Enterprises Inc., a subsidiary of Berkshire Hathaway, for $142 million in cash. The company was required to use a portion of the proceeds to offer to purchase up to $45,214,000 principal amount of its 11¾% senior secured notes due 2017.

Media General repurchased $200,000 of the notes at par through a tender offer that expired at 5 p.m. ET on July 30, according to a company news release.

The company said it used the amount that the noteholders elected not to take to repay at par a portion of the term loan with BH Finance.

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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