Berkshire Hathaway to Invest in E.W. Scripps

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.