Gray Television, Inc. (NYSE: GTN) has recently closed an offering of $1.25 billion of 10.500% senior secured first lien notes due 2029. The notes were issued at par, with the net proceeds being used to pre-pay a $1.2 billion tranche E term loan due in 2026, repurchase outstanding 5.875% senior notes due in 2026, and cover associated fees and expenses.
The interest on the notes will accrue from June 3, 2024, and will be payable semiannually starting from January 15, 2025. The notes mature on July 15, 2029.
It's worth noting that the notes and related guarantees have not been registered under the Securities Act of 1933 or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption therefrom.
This move represents a significant financing activity for Gray Television, Inc., providing a clear indication of the company's current focus on managing its debt obligations and optimizing its capital structure. The market has reacted to these announcements by moving the company's shares -3.1% to a price of $5.85. If you want to know more, read the company's complete 8-K report here.
