Gray Media Boosts Offering with $775 Million First Lien Notes
Gray Media Enhances Financial Strategy with $775 Million Notes
ATLANTA – Gray Media, Inc. (“Gray”) (NYSE: GTN) has announced a significant enhancement to its financial position by pricing a private offering of $775 million aggregate principal amount of 7.250% senior secured first lien notes due 2033. This announcement marks an increase of $75 million over the previously indicated offering size, demonstrating Gray’s commitment to optimizing its financial structure and reducing costs.
Purpose of the Notes Offering
The proceeds from this substantial notes offering will be used strategically to bolster Gray’s financial framework. Specifically, these funds will help repay a portion of Gray’s term loan D, which is due in December 2028, and term loan F, set to mature in June 2029. Additionally, Gray plans to eliminate all outstanding borrowings under its revolving credit facility with these proceeds. This move illustrates Gray's proactive approach to managing its debt obligations effectively.
Implications for Corporate Growth
Beyond debt repayment, the funds raised will also cover expenses related to the offering and support general corporate purposes. By ensuring a high level of financial stability, Gray is well-positioned to continue pursuing growth initiatives and operational enhancements that contribute to its market leadership.
Details of the Offering
The notes will be backed by guarantees on a senior secured first lien basis from all existing and future restricted subsidiaries of Gray, ensuring investor confidence due to the solid backing of Gray’s structure. These notes will primarily be offered to qualified institutional buyers under Rule 144A of the Securities Act of 1933, as well as non-U.S. participants in transactions outside the United States pursuant to Regulation S.
Investment Opportunities and Restrictions
It is important to note that these notes have not yet been registered under the Securities Act and cannot be sold in the U.S. unless registered or exempt from registration requirements. This limited availability indicates the offering's exclusivity and appeals to a select group of institutional investors seeking stability in their portfolios.
Insight on Forward-looking Statements
This announcement includes certain forward-looking statements reflecting Gray’s current expectations and estimates. These statements, identifiable by terms like “expect,” “anticipate,” and “will,” encompass the company’s outlook and potential challenges. Gray is aware of the uncertainties that could impact actual results, including the successful completion of the notes offering and the ability to deploy the proceeds effectively.
Risk Factors and Management’s Perspective
As with any strategic offering, there are inherent risks involved. Gray encourages stakeholders to review its quarterly and annual reports with the SEC, which outline various risk factors and management's analyses regarding the company’s financial health and operational results. These documents provide valuable context for understanding the overall risks associated with the notes offering.
Contact Information for Gray Media
For inquiries related to this offering or to gain more insight into Gray's operations, interested parties can reach out to:
Jeffrey R. Gignac, Executive Vice President and Chief Financial Officer, 404-504-9828
Kevin P. Latek, Executive Vice President, Chief Legal and Development Officer, 404-266-8333
Frequently Asked Questions
What is the amount of the notes offering announced by Gray Media?
Gray Media has announced a $775 million offering of senior secured notes due 2033.
What will the proceeds from the offering be used for?
The proceeds will be used for repaying existing term loans, eliminating borrowings under the revolving credit facility, covering offering expenses, and supporting general corporate purposes.
Who can invest in the notes being offered?
The notes are being offered to qualified institutional buyers and non-U.S. persons in accordance with specific regulations.
What guarantees are associated with the notes?
The notes will be guaranteed by existing and future restricted subsidiaries of Gray, providing additional security for investors.
How can investors learn about the inherent risks of this offering?
Investors are encouraged to review Gray’s quarterly and annual reports filed with the SEC to understand the risks and uncertainties associated with the offering.
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