ATLANTA - Gray Television, Inc. (NYSE: NYSE:GTN), a major local television station owner in the United States, has successfully closed the refinancing and expansion of its revolving credit facility, the company announced today. Concurrently, Gray has deferred its planned refinancing of a $1.19 billion term loan due in 2026, attributing the decision to the current market conditions.
On February 8, 2024, Gray received around $110 million in pre-tax cash proceeds from the sale of Broadcast Music, Inc. (BMI) to an investor group led by New Mountain Capital, LLC. This sale was previously disclosed and is part of Gray's strategic financial maneuvers.
Initially, on January 30, 2024, Gray had initiated a process to refinance a portion of its senior credit facilities. However, fluctuations in the capital markets prompted the company to postpone the refinancing of its substantial term loan. Despite this setback, Gray's banking partners demonstrated continued confidence by assisting in the amendment and extension of its $500 million revolving credit facility.
Due to robust demand, the company not only refinanced but also increased its revolving credit facilities to $625 million. The upsized facility includes a $552.5 million credit line maturing on December 31, 2027, and a $72.5 million line maturing on December 1, 2026. Gray confirmed that it has not drawn any amounts on these facilities as of now. The transaction involved payment of fees and expenses in cash upon closing.
Gray Television, headquartered in Atlanta, Georgia, is recognized as the largest owner of top-rated local television stations and digital assets in the U.S. The company's stations serve 113 television markets, reaching approximately 36 percent of U.S. television households. Its portfolio includes markets where it operates the top-rated or second-highest rated television station. Additionally, Gray owns several video program companies and studio production facilities.
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