Media General plans $300 million senior notes offering to help fund merger with LIN Media

By Paul A. Harris and Sara Rosenberg

Portland, Ore., Oct. 23 – Media General Inc. plans to sell $300 million of senior notes as part of the debt financing for its merger with LIN Media LLC, according to a market source.

The financing also includes $1,015,000,000 in new bank debt set to launch on Friday.

The bank debt is in the market via joint lead arrangers RBC Capital Markets, Deutsche Bank Securities Inc., SunTrust Robinson Humphrey Inc., U.S. Bank and Capital One.

Under the merger 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.

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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