ATLANTA - Gray Television, Inc. (NYSE: NYSE:GTN) has upsized its private offering to $1.25 billion in senior secured first lien notes due 2029, marking an increase from the initially announced $1 billion. The notes, priced at par, are part of the company's refinancing strategy, which includes the repurchase of outstanding senior notes and the refinancing of its existing term loan.
The offering is set to close on June 3, 2024, contingent on customary closing conditions and the successful refinancing of Gray's senior credit facility. The proceeds from the notes, along with up to $500 million from a new tranche F term loan, available funds from its revolving credit facility, and cash on hand, are intended to refinance Gray's $1.2 billion tranche E term loan due January 2, 2026. They will also be used to repurchase any and all of its outstanding 5.875% senior notes due in 2026 and to cover all fees and expenses related to the offering.
The notes will be guaranteed by each of Gray's existing and future restricted subsidiaries that also guarantee its senior credit facility. This offering is targeted at qualified institutional buyers under Rule 144A of the Securities Act of 1933, as well as non-U.S. persons in offshore transactions under Regulation S of the Securities Act.
Gray has noted that the securities involved have not been registered under the Securities Act and, therefore, may not be offered or sold within the United States absent registration or an exemption from registration requirements.
This press release also contains forward-looking statements based on current expectations and assumptions by Gray, which are subject to risks and uncertainties that could cause actual results to differ materially. These include the company's ability to complete the notes offering, the refinancing of the senior credit facility, and the tender offer. Gray has acknowledged that these forward-looking statements are subject to change and are not guarantees of future performance or results.
The information for this article is based on a press release statement from Gray Television, Inc.
InvestingPro Insights
As Gray Television, Inc. (NYSE: GTN) moves forward with its strategic refinancing plan, the company's financial health and market performance become focal points for investors. According to the latest real-time data from InvestingPro, Gray Television holds a market capitalization of $559.76 million. In the face of recent market volatility, GTN's stock has experienced significant price fluctuations, with a one-week total return of -9.92%, underscoring the importance of the company's refinancing strategy to stabilize its financial position.
InvestingPro Tips highlight that Gray Television is trading at a low Price / Book multiple of 0.28, as of Q1 2024, which may suggest the stock is undervalued relative to its assets. Furthermore, analysts are optimistic about the company's future profitability, predicting that net income is expected to grow this year. This potential for growth, coupled with a high shareholder yield, could present an opportunity for investors seeking to capitalize on the company's recovery and future earnings prospects.
For those interested in a deeper analysis, InvestingPro offers additional insights and metrics on Gray Television. There are currently 7 more InvestingPro Tips available for GTN, which can be found at: https://www.investing.com/pro/GTN. By using the coupon code PRONEWS24, readers can enjoy an extra 10% off a yearly or biyearly Pro and Pro+ subscription, providing access to comprehensive data and expert analysis that can inform investment decisions.
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