Gray Media, Inc. has announced the completion of its offering of $900 million aggregate principal amount of 9.625% senior secured second lien notes due 2032. The notes were issued at par, and the net proceeds from the offering, along with borrowings under its revolving credit facility, will be used for several purposes. This includes redeeming all of Gray's outstanding 7.000% senior notes due 2027, repaying a portion of Gray’s term loan f due June 4, 2029, and paying fees and expenses related to the offering. The company repaid $402.5 million of the term loan f with the net proceeds from the notes, leaving an outstanding term loan f balance of $90 million.
The notes are guaranteed, jointly and severally, on a senior secured second lien basis, by each existing and future restricted subsidiary of Gray that guarantees Gray’s existing senior credit facility. Interest on the notes will accrue from July 18, 2025, and will be payable semiannually, on January 15 and July 15 of each year, commencing January 15, 2026. 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 of any jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption therefrom. The notes were offered only to qualified institutional buyers under Rule 144A and to persons outside the United States under Regulation S. 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 more information, read the company's full 8-K submission here.
