Gray Announces Private Offering Of Senior Notes

Gray Television announced today that a special purpose wholly owned subsidiary of Gray intends to offer up to $1,125 million aggregate principal amount of senior notes due 2031, subject to market conditions. The offering, it said, will be exempt from the registration requirements of the Securities Act of 1933.

The notes are being offered to finance, together with cash on hand and anticipated borrowings under Gray’s senior credit facility, Gray’s pending merger with Meredith Corp., pursuant to which Gray will acquire Meredith’s local media group, immediately after and subject to Meredith’s spin-off of its national media group to the Meredith shareholders, which was previously announced on May 3.

If the Meredith merger is consummated and certain other conditions are satisfied, the net proceeds from the offering will be released from escrow to fund the Meredith merger, and Gray will become the obligor under the notes.