Shearman & Sterling represented Media General, Inc., a publicly traded media company, in connection with financing agreements reached with Berkshire Hathaway, Inc.
Media General and Berkshire Hathaway entered into a $400 million term loan agreement and a $45 million revolving credit agreement, the proceeds of which will repay Media General’s existing bank debt that would have matured in March 2013. The new Berkshire Hathaway loan will mature in May 2020. Media General issued warrants to Berkshire Hathaway for the purchase of Class A shares, in a number equal to 19.9% of Media General’s outstanding shares, and Berkshire Hathaway will have the right to nominate a director to Media General’s board.
In addition to the financing arrangements, Berkshire Hathaway agreed to acquire all of Media General’s newspapers (other than one newspaper in Tampa, Florida) for $142 million in cash as part of a previously announced divestiture plan. After the sale closes, which is expected to occur on June 25, Media General will own broadcast and digital businesses, primarily in the Southeastern United States.
The Shearman & Sterling team included partners Douglas P. Bartner (New York-Bankruptcy & Reorganization), Laurence M. Bambino (New York-Tax), Beau W. Buffier (New York-Antitrust), Christa A. D’Alimonte (New York-Mergers & Acquisitions), Stephen T. Giove (New York-Capital Markets), Don J. Lonczak (Washington, DC-Tax), Steven E. Sherman (New York-Finance) and Michael B. Shulman (Washington, DC-Tax); counsel Jill Frizzley (New York-Bankruptcy & Reorganization) and Sharon Lippett(New York-Executive Compensation & Employee Benefits); associates Robert Britton (New York-Bankruptcy & Reorganization), Christina Broch (New York-Finance), Fraser Hartley (New York-Capital Markets), Kelly Karapetyan (New York-Antitrust), Jennifer M. Pacella (New York-Finance), Geoffrey L. Rawle (New York-Capital Markets), Jeff Saccone (New York-Finance), Veronica M. Wissel (New York-Executive Compensation & Employee Benefits), Doreen Xia (New York-Capital Markets) and Barbara Zylberg (New York-Finance); and trainee Jack Prytherch.
