Media General announced that it entered into a new credit agreement with a syndicate of lenders in connection with its pending merger with Young Broadcasting. The new credit facilities consist of a $60 million, five-year revolving credit facility and an $885 million, seven-year term loan.

Additionally, Shield Media LLC and Shield Media Lansing LLC (Shield Media), companies with which Young Broadcasting has shared services arrangements for two stations, entered into a new $32 million term loan facility with a syndicate of lenders, dated as of July 31, 2103, the availability of which is contingent on certain conditions, primarily the successful completion of the merger of Media General and Young Broadcasting. The new term loan facility will refinance Shield Media companies’ existing $32 million term loans under one new credit agreement.

RBC Capital Markets acted as lead left arranger and will serve as the administrative agent on the new Media General and Shield Media credit facilities.

Media General previously entered into a merger agreement with Young Broadcasting, which is expected to be completed in the late third quarter or early fourth quarter of this year.

“The merger of Media General and Young Broadcasting is a transformational event for both companies,” said George L. Mahoney, Media General’s president and chief executive officer. “Among its many benefits, the combination offered an opportunity to refinance our total debt at a significantly lower cost. This became a priority for us.”

Proceeds from the new credit facilities will be used to repay all of the outstanding debt of Media General and Young Broadcasting, including associated call premiums.