Gray Announces Private Offering Of $550M Of Senior Notes

Gray Television said Thursday that it is offering of $550 million aggregate principal amount of senior notes due 2030, the completion of which is subject to market conditions. The notes will be the company’s senior unsecured obligations and “will be guaranteed, jointly and severally, by each existing and future restricted subsidiary of Gray that guarantees Gray’s existing senior credit facility.”

Gray said it intends to use the net proceeds of the offering to:

• Redeem all of its outstanding $525.0 million aggregate principal amount of 5.125% senior notes due 2024.
• Pay all fees and expenses in connection with the offering, including the redemption premium applicable to the existing 2024 notes.
• For general corporate purposes.

On Oct. 8, Gray also issued a conditional notice of redemption to the holders of the existing 2024 notes, notifying such holders that Gray intends to redeem all of the existing 2024 notes on Oct. 19. The redemption of the existing 2024 notes is conditioned upon the consummation of offering of the new notes. If redeemed, the existing 2024 notes will be redeemed at 102.563% of par, plus the accrued and unpaid interest to, but excluding, the date of redemption.