Gray Media, Inc. has just completed an offering of $900 million in senior secured second lien notes due 2032, with an interest rate of 9.625%. The net proceeds from the offering, along with borrowings under its revolving credit facility, were used to redeem all of Gray's outstanding 7.000% senior notes due 2027 and to partially repay the company's term loan F, due June 4, 2029.
The company repaid $402.5 million of the term loan F with the net proceeds from the notes, leaving an outstanding balance of $90 million on the term loan F. The notes, which were issued at par, are guaranteed on a senior secured second lien basis by each existing and future restricted subsidiary of Gray that guarantees the company's existing senior credit facility.
Interest on the notes will accrue semiannually, with the first payment due on January 15, 2026, and the notes will mature on July 15, 2032. It's important to note that the notes and related guarantees have not been registered under the securities laws and may not be offered or sold in the United States absent registration or an applicable exemption.
This move showcases Gray Media, Inc.'s strategic financial management, as it restructures its debt by issuing new notes with a higher interest rate while using the proceeds to pay off existing debts, ultimately reducing its outstanding term loan F balance to $90 million. As a result of these announcements, the company's shares have moved -1.36% on the market, and are now trading at a price of $5.09. For the full picture, make sure to review GRAY MEDIA, INC's 8-K report.
