Gray Television announced today that it is proposing, subject to market and other conditions, to refinance certain of its existing senior credit facilities. Gray also announced updates to certain of its previously announced guidance for the fourth quarter of 2023, based on preliminary information available to date.
Refinancing
Today, Gray began a process through which it expects to amend certain terms of its $1.19 billion term loan and $500 million revolving credit facility due 2026, including extending the maturity of its $1.19 billion term loan from January 2026 to July 2029 and its $500 million revolving credit facility from January 2026 to December 2027.
Updated Guidance
Gray initially issued guidance for fourth quarter 2023 on Nov. 8, 2023. While Gray is continuing the process of finalizing its financial results for the fourth quarter of 2023, Gray provides the following updates to its guidance on its estimated results of operations representing the most current information and estimates available to Gray as of the date of this release.
| Selected operating data: | Low End Guidance for the Fourth Quarter of 2023 | % Change From Previous Guidance for the Fourth Quarter of 2023 | High End Guidance for the Fourth Quarter of 2023 | % Change From Previous Guidance for the Fourth Quarter of 2023 | |||||||
| OPERATING REVENUE: | |||||||||||
| Broadcasting Revenue (less agency commissions) | $ | 830 | 1 | % | $ | 835 | 0 | % | |||
| Total Revenue (less agency commissions) | $ | 860 | 1 | % | $ | 865 | 0 | % | |||
| OPERATING EXPENSES: | |||||||||||
| (before depreciation, amortization and gain on disposal of assets): | |||||||||||
| Broadcasting | $ | 600 | -1 | % | $ | 605 | -1 | % | |||
| Production companies | $ | 26 | 0 | % | $ | 28 | 0 | % | |||
| Corporate and administrative | $ | 30 | -14 | % | $ | 35 | -13 | % | |||
As of Dec. 31, 2023, Gray currently expects to report approximately:
Gray said: “We currently anticipate that we will record a pre-tax, non-cash impairment of $21 million for certain investments made prior to calendar year 2023. In addition, we anticipate that our total leverage ratio, as defined under our Senior Credit Facility, measured on a trailing eight quarter basis, netting all cash on hand, and giving pro forma effect for all acquisitions completed through the date of this release, will be between 5.60 times and 5.65 times as of December 31, 2023.
“We have not yet completed our normal financial closing and review process; therefore, these estimates are subject to change upon finalization. As a result, our actual results may be different and such differences could be material. Investors should exercise caution in relying on the information contained herein and should not draw any inferences from this information regarding financial or operating data that is not presented below.
Anticipated BMI Proceeds
The company said: “We expect to receive approximately $110 million in pre-tax cash proceeds upon the closing of the previously announced sale of Broadcast Music Inc. to a shareholder group led by New Mountain Capital. Gray’s equity ownership in BMI began decades ago and has increased through various acquisitions of other broadcast stations and companies over the years. We understand that BMI’s sale remains subject to customary regulatory and other approvals and is currently expected to close by the end of the first quarter 2024. We intend to use the proceeds for general corporate purposes, which may include the repayment of debt.”
16 May 2024
23 May 2024
Comments (0)