Media General to launch about $1 billion of bank debt on Friday

By Sara Rosenberg

New York, Oct. 23 – Media General Inc. set a conference call for 9:30 a.m. ET on Friday to launch $1,015,000,000 in new bank debt, according to a market source.

RBC Capital Markets, Deutsche Bank Securities Inc., SunTrust Robinson Humphrey Inc., U.S. Bank and Capital One are the joint lead arrangers on the deal.

The debt consists of an incremental $90 million revolver, a $600 million five-year term loan A and a $325 million term loan B due July 2020, the source said.

Included in the loans is a total leverage covenant.

Proceeds will be used to support the company’s merger with LIN Media LLC.

Under the agreement, shareholders of LIN Media will receive $25.97 in cash or 1.4714 shares of the new holding company, subject to proration. The maximum cash amount that will be paid to the LIN Media shareholders is $763 million. Media General shareholders will receive one share of the new holding company for each share of Media General that they own upon closing.

The new loans and a planned $300 million senior unsecured notes offering will fund the cash payment to LIN Shareholders and refinance certain LIN debt.

Closing is subject to customary closing conditions, including the approval of the Federal Communications Commission, clearance under the Hart-Scott-Rodino Antitrust Improvements Act and certain third-party consents.

Media General is a Richmond, Va.-based local television broadcasting and digital media company. LIN Media is an Austin, Texas-based local multimedia company.

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