Gray Media completed a $750 million offering of 7.500% senior secured first lien notes due 2034, issuing the notes at par on August 21, 2026.
The company said the proceeds are being used to retire $675 million of its 10.500% senior secured first lien notes due 2029, repay $21 million of borrowings on its revolving credit facility, and cover fees and expenses tied to the transaction, including the call premium and accrued interest on the notes being redeemed.
After the planned August 27, 2026 redemption, Gray expects to have $350 million of the 2029 notes still outstanding. That means the company is taking out $675 million of the older debt while leaving a smaller $350 million balance in place.
The new notes carry a lower coupon than the debt being redeemed: 7.500% versus 10.500%, a difference of 3.0 percentage points. The notes mature in September 2034 and begin accruing interest from August 21, 2026, with semiannual payments starting March 15, 2027.
The notes are secured on a first-lien basis and guaranteed by Gray’s existing and future restricted subsidiaries that back its senior credit facility. The market has reacted to these announcements by moving the company's shares 0.61% to a price of $4.94. For more information, read the company's full 8-K submission here.
