Gray Slightly Raises 4Q Rev. Guidance

Gray Television today updated its previously announced guidance for the fourth quarter of 2016, while at the same time said it will refinance and extend its revolving credit and senior credit facilities

Gray initially issued guidance for fourth quarter 2016 on Nov. 8, 2016. Today it increased its guidance for broadcast revenues to $237 million-$238 million from the earlier range of $230 million-$237 million.

According to analysis by Wells Fargo’s Marci Ryvicker, that increase “is due to better than expected core advertising” and added that “we are encouraged by the revised guide, especially given the lack of visibility over core ad trends heading into fourth quarter earnings.”

Gray said it expects to refinance or extend its existing indebtedness through some or all of the following:

• Extension of its revolving credit facility to February 2022 from the current July 2020 maturity and an increase in aggregate commitments to $100 million from the current $60 million.

• Extension of the existing $556.4 million term loan maturity to February 2024 from the current June 2021 maturity.