Gray Announces Closing and Upsizing of Revolving Credit Facility Refinancing and Announces Update on Term Loan and BMI Sale Proceeds
17 February 2024 - 8:15AM
Gray Television, Inc. (“Gray,” “we,” “us” or “our”) (NYSE: GTN)
announced today that it has closed a refinancing and upsizing of
its revolving credit facility and has postponed its planned
opportunistic refinancing of its $1.19 billion term loan due in
2026, due to recent market conditions. In addition, Gray announced
today that, on February 8, 2024, Gray received approximately $110
million in pre-tax cash proceeds from the closing of the previously
announced sale of Broadcast Music, Inc. (“BMI”) to a
shareholder group led by New Mountain Capital, LLC.
On January 30, 2024, Gray launched a process, subject to market
and other conditions, to refinance a portion of its existing senior
credit facilities. Subsequent developments in the capital markets
led Gray to postpone the process through which it intended to amend
certain terms and extend the maturity of its $1.19 billion term
loan.
Despite such developments, Gray’s banking group continued to
support the company in amending and extending its $500 million
revolving credit facility. In fact, due to strong demand, Gray
upsized its revolving credit facilities to $625 million, which
includes a new $552.5 million revolving credit facility maturing on
December 31, 2027 and $72.5 million facility maturing on December
1, 2026.
Gray paid transaction fees and expenses in cash at closing. We
currently have no amounts drawn on our revolving credit
facilities.
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 in the United States.
Its television stations serve 113 television markets that
collectively reach approximately 36 percent of US television
households. This portfolio includes 80 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.
Cautionary Statements for Purposes of the “Safe Harbor”
Provisions of the Private Securities Litigation Reform
Act
This press release contains certain forward-looking statements
that 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,” “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. 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.
Gray Contacts:
Jim Ryan, Executive Vice President and Chief
Financial Officer, 404-504-9828Kevin P. Latek,
Executive Vice President, Chief Legal and Development Officer,
404-266-8333
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