ATLANTA - Gray Television, Inc. (NYSE: NYSE:GTN) announced on Monday its intention to offer up to $1 billion in senior secured first lien notes due 2029, contingent on market conditions. The media company also plans to engage in a series of financial maneuvers, including incurring a new tranche F term loan of up to $750 million and increasing its existing revolving credit facility commitments by $55 million, bringing the total to $680 million.
The proposed offering and credit agreement refinancing are interdependent, with the successful closing of one being a prerequisite for the other. Gray Television aims to utilize the proceeds from these transactions to refinance its $1.2 billion tranche E term loan maturing in 2026, to repurchase its outstanding 5.875% senior notes due the same year, and to cover related fees and expenses.
The notes will be accompanied by guarantees from Gray’s existing and future restricted subsidiaries that also back the company’s senior credit facility. The offering targets qualified institutional buyers under Rule 144A and non-U.S. persons in offshore transactions under Regulation S of the Securities Act.
Gray Television has made it clear that the notes will not be registered under the Securities Act and, therefore, cannot be sold within the United States without registration or an exemption from registration requirements.
The press release from Gray Television contains forward-looking statements based on current expectations and assumptions. These are subject to risks and uncertainties that could cause actual results to differ materially from those projected. The company emphasizes that these statements should be evaluated considering the risk factors disclosed in its periodic filings with the Securities and Exchange Commission.
This news is based on a press release statement from Gray Television, Inc., and represents only the facts as stated by the company, without any endorsement of the claims. There is no assurance that the credit agreement refinancing or the notes offering will be completed as planned, or at all.
InvestingPro Insights
As Gray Television, Inc. (NYSE: GTN) navigates a significant financial restructuring with its latest debt offering and credit facility expansion, the company's market position and future profitability are of keen interest to investors.
According to InvestingPro data, Gray Television currently has a market capitalization of $637.87 million, indicating the size and scale of the business in the media industry. Notably, the P/E Ratio stands at a negative -68.14, reflecting the challenges the company has faced in generating net income over the past twelve months. Still, the adjusted P/E Ratio for the last twelve months as of Q1 2024 has improved to -29.21, suggesting potential for a better financial outlook.
InvestingPro Tips highlight that analysts are optimistic about Gray Television's potential to increase its net income this year. This is a crucial factor to consider, as the company's ability to turn profitable could significantly influence its stock performance and ability to meet financial obligations. Moreover, the company is trading at a low Price/Book multiple of 0.31, which might appeal to value investors looking for stocks that are potentially undervalued compared to their book value.
For those interested in a deeper analysis, InvestingPro offers additional insights on Gray Television, including more InvestingPro Tips that can be found at https://www.investing.com/pro/GTN. Subscribers can access these tips and use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription. As of now, there are 6 additional InvestingPro Tips available for Gray Television, providing a comprehensive overview for informed investment decisions.
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