Gray Media has completed a $750 million offering of 7.500% senior secured first lien notes due 2034, issuing the notes at par.
The new debt will be used to retire $675 million of the company’s 10.500% senior secured first lien notes due 2029, repay $21 million drawn on its revolving credit facility, and cover fees and expenses tied to the transaction, including call premium and accrued interest.
After the planned redemption of the 2029 notes on Aug. 27, 2026, Gray expects to still have $350 million of those 2029 notes outstanding.
The new notes carry a lower coupon than the debt they are replacing: 7.500% versus 10.500%, a reduction of 300 basis points. On the $675 million being redeemed, that coupon difference represents $20.25 million less annual interest expense before factoring in fees, premiums, and the remaining 2029 balance.
The notes mature on Sept. 15, 2034 and pay interest semiannually, beginning March 15, 2027. They are guaranteed on a senior secured first lien basis by Gray’s restricted subsidiaries that already back its senior credit facility. As a result of these announcements, the company's shares have moved 0.61% on the market, and are now trading at a price of $4.94. Check out the company's full 8-K submission here.
