The company said it expects to fund the share repurchase by using the approximately $120 million of cash proceeds from the sale of WJAR Providence, R.I.
Media General Inc. has authorized a share repurchase program of up to $120 million.
The company said it expects to fund the share repurchase by using the approximately $120 million of cash proceeds from the sale of WJAR Providence, R.I., that was completed in connection with the merger with LIN Media.
Those proceeds, which were deposited with a qualified intermediary, will be released to the company in June. Any share repurchases made prior to the release of the cash proceeds are expected to be funded temporarily from cash on hand or borrowings under the company’s revolving credit facility.
Vincent Sadusky, the company’s president-CEO, said: “Although we had hoped to use the WJAR-TV sale proceeds to acquire one or more television stations in a transaction qualifying as a like-kind exchange, we were unable to identify acquisition opportunities that met our rigorous acquisition standards.
“We decided that, absent such an acquisition, the best way to deliver long-term value for all of our shareholders is to use these sale proceeds to repurchase shares and return cash to our shareholders. As we previously indicated, we intend to remain focused on using the free cash flow we generate from our operations to de-lever our balance sheet.”