Gray Media Completes $775 Million Offering of Senior Notes
Gray Media Finalizes $775 Million Offering of Senior Notes
ATLANTA — Gray Media, Inc. (“Gray”) (NYSE: GTN) has successfully completed its previously announced offering of senior secured first lien notes. This offering amounts to $775 million and features an interest rate of 7.250%, with a maturity date of 2033. The senior notes were issued at par value.
The proceeds from this strategic issuance are earmarked for several critical financial maneuvers. Specifically, Gray plans to utilize these funds to reduce liabilities, focusing on both term loans that are approaching their due dates. These repayments will enhance the company’s financial health and stability.
Utilization of Proceeds to Strengthen Financial Position
Upon closer examination, the net proceeds from the offering will be employed as follows: firstly, to repay a substantial portion of Gray’s Term Loan D, which is set to mature in December 2028; secondly, to address outstanding amounts on Term Loan F due in June 2029; and thirdly, to settle the complete outstanding balance under the Revolving Credit Facility. Furthermore, part of the funds will be allocated for associated fees and general corporate purposes.
Details of Debt Reduction
Specifically, the funds from the senior secured notes will enable Gray to achieve the following debt reduction milestones:
- $630 million of Term Loan D will be repaid, leading to an outstanding balance of $739 million.
- The company will also reduce Term Loan F by $80 million, leaving a remaining balance of just $10 million.
- Lastly, Gray intends to clear all $50 million currently drawn from the Revolving Credit Facility, which will increase undrawn availability to $750 million, aside from roughly $8 million reserved for letters of credit.
Interest Payment Structure and Guarantees
The interest on these notes will begin to accrue from the announcement date. Payments will be made bi-annually, specifically on February 15 and August 15, starting from February 15, 2026. This structured payment approach ensures that investors receive timely returns as the company works toward long-term financial health.
Each existing and future restricted subsidiary of Gray is providing joint and several guarantees of the notes on a senior secured first lien basis. This means that Gray is creating robust security for its bondholders while strengthening its financial foundations.
Regulatory Compliance in Securities Offering
It is important to note that these notes, along with the related guarantees, have not been registered under the Securities Act of 1933 or any applicable securities laws. As such, they will not be offered or sold within the United States unless they are registered or fall under an exemption. The offering is strictly limited to persons deemed qualified institutional buyers per Rule 144A, as well as to entities outside the U.S. that comply with Regulation S.
Commitment to Transparency and Compliance
Gray is committed to transparency and adheres to strict regulatory compliance in all its financial dealings. This includes comprehensive disclosures in the event of any forward-looking statements regarding the offering. The company is dedicated to keeping investors informed regarding risks, potential outcomes, and overall company performance.
Contact Information for Inquiries
For further inquiries related to this offering, Gray Media welcomes communication through its authorized contacts:
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 offering?
The total amount of the offering is $775 million in senior secured first lien notes.
What is the interest rate on the notes?
The interest rate for the notes is 7.250%, and it will be paid semiannually.
What is the maturity date of these notes?
The notes are set to mature on August 15, 2033.
How will the proceeds from the offering be utilized?
The proceeds will primarily be used to repay existing term loans and reduce debt under the revolving credit facility.
Who can access the offering?
The offering is limited to qualified institutional buyers and individuals outside of the U.S. under specific regulations.
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