In an E.W. Scripps press release yesterday, it was revealed that Berkshire Hathaway was planning to assist in the company’s $2.65 billion acquisition of ION Media:
Berkshire Hathaway investment highlights
- Amount of preferred stock: $600 million
- Dividends: 8% per year if paid in cash; 9% if deferred
- Redemption: The preferred stock will have no maturity date but will be redeemable starting five years after issuance.
- Warrant: Berkshire Hathaway to receive a warrant to purchase up to 23.1 million Scripps Class A shares at $13 per share. Berkshire may exercise the warrant at any time but no later than one year after all preferred stock has been redeemed.
- Other considerations: While the preferred stock is outstanding, Scripps cannot issue a dividend or repurchase shares.
- Governance: Berkshire Hathaway will not receive any board seats and will have no other governance rights.