Gray Television Announces Commencement of Proposed $1.6 Billion Refinancing Process and a Further Increase to its Revolving Credit Facility
May 15 2024 - 4:43PM
Gray Television, Inc. (“Gray,” the “Company,” “we,” or “our”)
(NYSE: GTN) announced today the commencement of a refinancing
process for its existing $1.15 billion term loan due 2026 and up to
$450 million of its 5.875% senior notes due 2026, with the goal of
extending a significant portion of its near-term debt
maturities. Overall, the Company is targeting
refinancing that outstanding debt with approximately $750 million
of new senior secured term loans maturing in 2029 and approximately
$750 million of additional senior secured debt, together with cash
on hand and borrowings of approximately $100 million under its
revolving credit facility due 2027.
In addition, Gray announced that it has received commitments to
increase its revolving credit facility maturing on December 31,
2027, from $552.5 million to $680 million. Upon closing of this
upsized revolver, Gray intends to terminate a separate $72.5
million revolving credit facility maturing on December 1, 2026.
Upon completion of these latest revolver transactions, and in
combination with the February 2024 upsizing and extension of its
revolver, Gray will have increased its total capacity under, and
extended, its revolver from $500 million with varying maturity
dates in 2026, to $680 million with a maturity date of December 31,
2027, reflecting strong support from our banking partners.
The terms of the proposed refinancing transactions will be
disclosed upon completion of the transactions. The proposed
refinancings will be subject to market and customary closing
conditions, and no assurance can be provided about the timing,
terms, or interest rate associated with the planned refinancing, or
that the refinancing transactions will be completed.
Forward-Looking Statements:
This press release contains certain forward-looking statements
tat are based largely on Gray’s current expectations and reflect
various estimates and assumptions by Gray. These statements are
statements other than those of historical fact and may be
identified by words such as “estimates,” “expect,” “anticipate,”
“will,” “implied,” “intend,” “assume” and similar expressions.
Forward-looking statements are subject to certain risks, trends and
uncertainties that could cause actual results and achievements to
differ materially from those expressed in such forward-looking
statements. Such risks, trends and uncertainties, which in some
instances are beyond Gray’s control, include Gray’s ability to
complete its proposed refinancing and revolver transactions on the
terms and within the timeframe currently contemplated, and other
future events. Gray is subject to additional risks and
uncertainties described in Gray’s quarterly and annual reports
filed with the Securities and Exchange Commission from time to
time, including in the “Risk Factors,” and management’s discussion
and analysis of financial condition and results of operations
sections contained therein, which reports are made publicly
available via its website, www.gray.tv. Any forward-looking
statements in this communication should be evaluated in light of
these important risk factors. This press release reflects
management’s views as of the date hereof. Except to the extent
required by applicable law, Gray undertakes no obligation to update
or revise any information contained in this communication beyond
the date hereof, whether as a result of new information, future
events or otherwise.
About
Gray:
Gray Television, Inc. is a multimedia company headquartered in
Atlanta, Georgia. Gray is the nation’s largest owner of top-rated
local television stations and digital assets. Its television
stations serve 114 television markets that collectively reach
approximately 36 percent of US television households. This
portfolio includes 79 markets with the top-rated television station
and 102 markets with the first and/or second highest rated
television station. Gray also owns video program companies Raycom
Sports, Tupelo Media Group, and PowerNation Studios, as well as the
studio production facilities Assembly Atlanta and Third Rail
Studios. Gray owns a majority interest in Swirl Films. For more
information, please visit www.gray.tv.
Gray Contacts:
Jim Ryan, Executive Vice President and Chief
Financial Officer, 404-504-9828Jeff Gignac,
Executive Vice President, Finance, 404-504-9828Kevin P.
Latek, Executive Vice President, Chief Legal and
Development Officer, 404-266-8333
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