Daily Progress Sold to Berkshire Hathaway

C-Ville links to Media General’s non-pay-walled press release. The Daily Progress’ pay-walled iteration of the press release is here.

We need local news reporting; here’s hoping the Berkshire Hathaway purchase provides better local news writing and reporting by the DP.

For those of you interested in the residential real estate market, today’s interest rates (~4%) look pretty good in comparison, don’t they?

The $400 million first lien term loan will have an interest rate of 10.5 percent, which could step down to 9 percent if total leverage were to reach 3.50x. The new loan will be issued at a discount of 11.5 percent and is secured pari passu with the company’s existing 11-3/4 percent senior secured notes due 2017. The closing date of the new credit agreement is expected to be no later than May 24. The existing term loan in the amount of approximately $364 million will be fully repaid the same day the new credit agreement becomes effective. Media General now expects total cash interest expense in 2012 will be approximately $67 million. Total interest expense, including non-cash amortization of issue discount, new issuance fees, and the warrants, is expected to be $80 million in 2012.

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