GRAY ANNOUNCES UPSIZING AND PRICING OF $800 MILLION OF 4.750% SENIOR NOTES DUE 2030

Rhea-AI Summary

Gray Television has announced the pricing of its private offering of $800 million in 4.750% senior notes due 2030, an increase of $250 million from the previous offering size. The notes will close on October 19, 2020. The proceeds will be used to redeem all outstanding $525 million of existing 5.125% senior notes due 2024, pay offering fees, and for general corporate purposes, including debt repayment. The offering is limited to qualified institutional buyers and non-U.S. persons under Securities Act regulations.

Positive

• Successfully priced an increased offering of $800 million in senior notes.
• Proceeds will be utilized to redeem higher-interest debt, potentially lowering future interest expenses.

Negative

• Offering may increase existing debt levels before redemption is completed.

ATLANTA, Oct. 08, 2020 (GLOBE NEWSWIRE) -- Gray Television, Inc. (“Gray,” “we,” “us” or “our”) (NYSE: GTN) announced today that it has priced its private offering of $800 million aggregate principal amount of 4.750% senior notes due 2030 (the “Notes”), an increase of $250 million over its previously announced offering size. The Notes were priced at par. The offering of the Notes is expected to close on October 19, 2020, subject to customary closing conditions. The Notes will be senior unsecured obligations of Gray and will be guaranteed, jointly and severally, by each existing and future restricted subsidiary of Gray that guarantees Gray’s existing senior credit facility.

Gray intends to use the net proceeds of the offering (i) to redeem all of its outstanding $525.0 million aggregate principal amount of 5.125% senior notes due 2024 (the “existing 2024 notes”), (ii) to pay all fees and expenses in connection with the offering, including the redemption premium applicable to the existing 2024 notes, and (iii) for general corporate purposes, which could include the repayment of outstanding debt from time to time.

The Notes and related guarantees will be offered only to qualified institutional buyers under Rule 144A of the Securities Act of 1933, as amended (the “Securities Act”), and to non-U.S. persons in transactions outside the United States under Regulation S of the Securities Act. The Notes have not been, and will not be, registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and other applicable securities laws.

This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. This notice is being issued pursuant to and in accordance with Rule 135c under the Securities Act. Furthermore, the foregoing does not constitute a notice of redemption for, or an offer to purchase, any of the existing 2024 notes.

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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FAQ

What is the recent announcement by Gray Television related to GTN stock?

Gray Television announced a private offering of $800 million in senior notes due 2030 to improve its debt structure.

When will the offering of the senior notes close?

The offering is expected to close on October 19, 2020.

How much existing debt will Gray Television redeem with the new notes?

Gray intends to redeem $525 million of existing 5.125% senior notes due 2024.

What is the interest rate on the newly offered senior notes?

The newly offered senior notes have an interest rate of 4.750%.

Who can purchase the senior notes issued by Gray Television?

The notes are offered only to qualified institutional buyers and non-U.S. persons under Regulation S.