By: E&P Staff
After markets closed Friday, Media General said it completed the sale of $300 million in senior notes and reached agreements to extend and amend the terms of its credit facilities.
The $300 million in notes stretches the maturity on nearly half of Media General’s debt to 2017. The notes were sold at a discount with an 11.75% interest rate.
Media General said it has in place with its syndicate of banks a $400 million term loan that is fully drawn and a $70 million revolving credit line with approximately $6 million drawn. “The covenants have been amended to reflect the current operating environment and position the company to emerge from the economic downturn,” the Richmond, Va.-based parent company of The Tampa Tribune said.
Media General’s total debt outstanding is approximately $700 million.
“Our amended and extended credit facility and senior notes placement provide Media General with greater financial flexibility as we execute our business strategy while continuing to navigate soft economic conditions,” President and CEO Marshall N. Morton said in a statement. “We are committed to further strengthening our financial position and building shareholder value over the long term. In combination with our significantly reduced cost structure, Media General is well-positioned to capitalize on an improved economy.”
More financial details are posted at E&P’s business-oriented Fitz & Jen blog.