Newspaper & Mailroom

Media General Announces Expiration of Tender Offer and Payment at Par on Term Loan

Tuesday 07. August 2012 - Media General, Inc. (NYSE: MEG) announced today that its tender offer to purchase up to $45.2 million of its 11?% Senior Secured Notes due 2017 expired on July 30, 2012 at 5 p.m. ET. Media General accepted for purchase $200,000 of notes that were validly tendered and the purchased notes were canceled. Holders of the validly tendered notes received the announced purchase price of 100% of the principal amount plus accrued and unpaid interest to the date of payment. All notes not tendered remain outstanding, leaving a principal amount due of $299.8 million.

Media General used the amount that the Senior Secured Note Holders elected not to take to repay, at par, a portion of its term loan with BH Finance LLC (an affiliate of Berkshire Hathaway). The principal amount outstanding on that term loan is now $301 million. Using the proceeds from its sale of newspapers on June 25, 2012, Media General has reduced the face value of its total long-term debt to $601 million, compared with $700 million at the end of the second quarter of 2012. (See Media General’s Form 10-Q for the second quarter of 2012, filed with the SEC on August 3, 2012, Note 5, for details about the company’s current financing arrangements.)