Gray Announces Closing of Offering of $800 Million of 4.750% Senior Notes Due 2030
Gray Television (NYSE: GTN) has successfully completed an offering of $800 million in 4.750% senior notes due 2030. The proceeds will be utilized to redeem $525 million of existing 5.125% senior notes due 2024, cover offering fees, and for general corporate purposes, including debt repayment. The new notes are guaranteed by Gray's existing and future subsidiaries and will accrue interest starting October 19, 2020, payable semiannually. Notably, these notes are not registered under the Securities Act.
- Successful completion of $800 million senior notes offering.
- Lower interest rate of 4.750% compared to the existing notes' 5.125%.
- Proceeds will be used to redeem higher-interest existing debt, improving overall financial position.
- Issuing new debt could increase financial leverage and risk.
- Existing 5.125% senior notes redemption indicates potential refinancing risks.
Atlanta, Oct. 19, 2020 (GLOBE NEWSWIRE) -- Gray Television, Inc. (“Gray,” “we,” “us” or “our”) (NYSE: GTN) announced today that it has completed its previously announced offering of
The net proceeds from the Notes are being used (i) to redeem all of the Company’s outstanding
The Notes are guaranteed, jointly and severally, by each existing and future restricted subsidiary of Gray that guarantees Gray’s existing senior credit facility.
Interest on the Notes accrues from October 19, 2020 and is payable semiannually, on April 15 and October 15 of each year, commencing April 15, 2021. The Notes mature on October 15, 2030.
The Notes and the related guarantees have not been, and will not be, registered under the Securities Act of 1933 (the “Securities Act”) or the securities laws of any other 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.
Cautionary Statements for Purposes of the “Safe Harbor” Provisions of the Private Securities Litigation Reform Act
This press release contains statements that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and the federal securities laws. These “forward-looking statements” are not statements of historical facts, and may include, among other things, statements regarding our current expectations and beliefs as to our ability to consummate the offering of Notes, the intended use of proceeds thereof, and other future events. Actual results are subject to a number of risks and uncertainties and may differ materially from the current expectations and beliefs discussed in this press release. All information set forth in this release is as of the date hereof. We do not intend, and undertake no duty, to update this information to reflect future events or circumstances. Information about certain potential factors that could affect our business and financial results and cause actual results to differ materially from those expressed or implied in any forward-looking statements are included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in our Annual Report on Form 10-K for the year ended December 31, 2019, and our Quarterly Reports on Form 10-Q for the quarters ended March 31, 2020 and June 30, 2020, each of which is on file with the U.S. Securities and Exchange Commission (the “SEC”), and may be contained in reports subsequently filed with the SEC and available at the SEC’s website at www.sec.gov.
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