Gray Television, Inc. has made significant progress in reducing its debt, with a total principal debt reduction of $278 million since October 1, 2024, and a total reduction of $519 million since January 1, 2024. The board of directors has also authorized an increase in the debt repurchase authorization to a total of $250 million.
Since November 8, 2024, the company has used approximately $204 million of cash on hand to repurchase and retire $239 million of principal amount of debt, including $5 million of outstanding principal of term loan D due December 1, 2028, $143 million of outstanding principal of 2027 notes, $10 million of outstanding principal of 2030 notes, and $81 million of outstanding principal of 2031 notes.
As a result of these transactions, the company's outstanding debt in principal amounts as of November 20, 2024, is as follows:
- Revolving credit facility due 12/31/2027: $0 million
- 2021 term loan due 12/1/2028: $1,395 million
- 2024 term loan due 6/4/2029: $499 million
- 10.5% senior secured notes due 7/15/2029: $1,250 million
- Total outstanding principal secured by a first lien: $3,144 million
- 5.875% senior unsecured notes due 7/15/2026: $10 million
- 7.000% senior unsecured notes due 5/15/2027: $528 million
- 4.750% senior unsecured notes due 10/15/2030: $790 million
- 5.375% senior unsecured notes due 11/15/2031: $1,219 million
- Total outstanding principal, including current portion: $5,691 million
The company anticipates that the reduction in outstanding debt will lead to a significant reduction in cash interest expense going forward. The extent of future repurchases, including the amount and timing of any repurchases, will depend on general market conditions, regulatory requirements, alternative investment opportunities, and other considerations. Following these announcements, the company's shares moved 1.0%, and are now trading at a price of $4.25. For more information, read the company's full 8-K submission here.
