Gray Media Expands Credit Facility and Restructures Debt Obligations
Gray Media Expands Financial Flexibility with New Credit Terms
Gray Media, Inc. (NYSE: GTN) has made a significant move to bolster its financial structure by increasing its revolving credit facility by $50 million, bringing the total available credit to an impressive $750 million. Alongside this increase, the maturity date of the facility has been extended to December 1, 2028, providing the company with enhanced liquidity for future growth.
Usage of the Revolving Credit Facility
This amended revolving credit facility, which now has $700 million of undrawn availability, is a critical component of Gray's financial strategy. It's essential to note that this amount excludes approximately $8 million dedicated to outstanding letters of credit. The flexibility offered by this facility allows Gray to effectively manage its capital needs and seize new opportunities as they arise.
Investment in Growth Through Strategic Borrowing
The recent adjustments come in conjunction with Gray's previously announced offering of $900 million in senior secured second lien notes, set to mature in 2032. These notes have played a pivotal role in refinancing existing debt and supporting the company’s operational strategies. Specifically, Gray utilized the proceeds to repay $402.5 million of its Term Loan F, which had been due in 2029, leaving a significantly reduced balance of $90 million. This strategic repayment aligns with the company's initiative to streamline its debt obligations.
Overview of Gray’s Market Position
Gray Media, Inc., headquartered in Atlanta, Georgia, is recognized as the largest owner of local television stations in the United States. The company operates across 113 television markets, collectively reaching about 37% of U.S. television households. Such reach positions Gray to leverage advertising revenue from both local and national clients effectively.
Comprehensive Media Solutions Offered by Gray
In addition to its vast network of television stations, Gray Media has diversified its operations with a robust digital marketing division, Gray Digital Media. This full-service agency provides distinct digital marketing strategies tailored to meet the evolving demands of both local and national clients. With advanced products and services, Gray Digital is committed to driving results for its clientele in an increasingly digital world.
Gray’s Additional Properties
Gray Media's portfolio also features several video production companies, such as Raycom Sports and Tupelo Media Group, along with studio production facilities like Assembly Atlanta and Third Rail Studios. These subsidiaries complement Gray's broadcasting capabilities and enhance its overall service offerings to meet both creative and commercial needs.
Looking Ahead: A Strategic Vision for Growth
As Gray continues to evolve within the media landscape, the recent adjustments in its credit facility reflect a deep commitment to financial prudence and growth. The extended credit terms not only provide a safety net but also fuel long-term initiatives as Gray navigates the dynamic media environment.
Contact Information for Further Inquiries
Gray Media, Inc. encourages interested parties to reach out for more details regarding their operations and strategic initiatives. For inquiries, Jeffrey R. Gignac, Executive Vice President, Chief Financial Officer, can be contacted at 404-504-9828, and Kevin P. Latek, Executive Vice President, Chief Legal and Development Officer, is available at 404-266-8333.
Frequently Asked Questions
What is the new total of Gray's revolving credit facility?
The total of Gray's revolving credit facility is now $750 million.
When is the maturity date for the updated credit facility?
The maturity date for the updated revolving credit facility has been extended to December 1, 2028.
How much undrawn availability does Gray have under its credit facility?
Gray has $700 million of undrawn availability under its revolving credit facility.
What strategic action did Gray take with the proceeds from the notes?
Gray used the proceeds from the notes to repay $402.5 million of its Term Loan F, thus reducing its outstanding balance significantly.
What subsidiaries enhance Gray Media’s service offerings?
Gray operates several subsidiaries, including Gray Digital Media, Raycom Sports, and studio production facilities that collectively enhance its media services.
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