Gray Media Boosts Second Lien Notes to $900 Million Offering

Gray Media Increases Offering of Senior Secured Notes
Gray Media, Inc. (“Gray”) (NYSE: GTN) has recently announced the successful pricing of its private offering of $900 million in senior secured second lien notes, set to mature in 2032. This new offering, which sees an increase of $150 million from previous announcements, reflects Gray's strategic financial maneuvers aimed at optimizing its capital structure and reinforcing its market position.
Details of the Senior Secured Notes
The notes, offering an attractive interest rate of 9.625%, were priced at par. This structure allows Gray to efficiently manage its debt obligations while enhancing liquidity. The closing of this offering is anticipated on July 18, adhering to customary closing conditions. Such movements are critical in light of market conditions and position Gray for growth.
Intended Use of Proceeds
The proceeds from the senior secured notes issuance are earmarked for several key financial strategies. First, Gray intends to redeem all of its outstanding 7.000% senior notes due 2027. This move not only simplifies the company's debt profile but also reduces interest expenses. Additionally, the funds will be utilized to repay a segment of Gray’s term loan due June 4, 2029, further solidifying its financial standing. The remainder will cover related fees and expenses associated with the issuance.
Guarantees and Offering Structure
The notes will be guaranteed on a second lien basis by all existing and future restricted subsidiaries of Gray that guarantee its current senior credit facility. This structure enhances the security of the notes and offers potential investors assurance regarding the financial backing of their investment.
Eligibility and Regulatory Compliance
These notes will be available exclusively to qualified institutional buyers under Rule 144A of the Securities Act of 1933, as well as non-U.S. investors in transactions outside the United States as per Regulation S. It's important to note that the notes have not been registered under the Securities Act and cannot be sold or offered in the U.S. without proper registration or an exemption.
Market Outlook and Future Steps
Market analysts are closely observing Gray’s moves, as the company positions itself in a transforming media landscape. The increase in the note offering not only reflects confidence in its financial trajectory but also sets a precedent for future capital-raising efforts. Given the evolving nature of media consumption and advertising dynamics, Gray is making significant steps to adapt and thrive.
Company Communications and Transparency
Gray's communication strategy is designed to maintain transparency while navigating these financial maneuvers. Management has made it clear that any details shared relate specifically to the offering and should be viewed with a focus on potential outcomes influenced by market conditions. All updates and disclosures are managed through their official channels to ensure stakeholders remain informed.
Contact Information for Gray Media
For further inquiries, Gray provides direct points of contact:
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 total amount of the new senior secured notes offering?
The total amount of the new senior secured notes offering by Gray is $900 million.
What is the interest rate on the senior secured notes?
The notes carry an interest rate of 9.625%.
What will the proceeds from the notes be used for?
The proceeds are designated to redeem existing senior notes, repay part of a term loan, and cover related fees and expenses.
Who can invest in these senior secured notes?
Only qualified institutional buyers and non-U.S. persons in specific transactions can invest in these notes.
Who can I contact for more information about Gray Media?
You can contact Jeffrey R. Gignac or Kevin P. Latek for more detailed information regarding Gray Media.
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