Gray Television Makes Significant Progress on Debt Reduction and Replenishes Authorization for Additional Debt Reduction
Friday, November 22nd, 2024
Gray Television, Inc. (“Gray,” “Gray Media,” the “Company,” “we,” “us” or “our”) (NYSE: GTN) has completed a series of transactions that collectively reduced the Company’s principal amount of debt outstanding by $278 million since October 1, 2024, bringing the Company’s total principal debt reduction to $519 million since January 1, 2024. Accordingly, our Board of Directors today has authorized an increase in our previously announced debt repurchase authorization, replenishing the authorization to a total of $250 million of available liquidity to repurchase our outstanding indebtedness. We anticipate that the meaningful reduction in our outstanding debt this year will result in a significant reduction of cash interest expense going forward.
Through various recently completed transactions since November 8, 2024, we have used approximately $204 million of cash on hand to repurchase and retire approximately $239 million of principal amount of debt consisting of:
(a) $5 million of outstanding principal of Term Loan D due December 1, 2028,
(b) $143 million of outstanding principal of 2027 Notes,
(c) $10 million of outstanding principal of 2030 Notes, and
(d) $81 million of outstanding principal of 2031 Notes.
As a result of these transactions, the Company currently has outstanding debt in the following principal amounts:
| Principal Amount Outstanding ($ in millions) |
December 31, 2023 Actual |
September 30, 2024 Actual |
November 20, 2024 Actual |
|||
| Revolving Credit Facility due 12/31/2027 ($680 million commitment) | - | - | ||||
| 2021 Term Loan due 12/1/2028 (S + 300) | $1,439 | $1,395 | ||||
| 2024 Term Loan due 6/4/2029 (S + 525) | 499 | 499 | ||||
| 10.5% Senior Secured Notes due 7/15/2029 | 1,250 | 1,250 | ||||
| Total outstanding principal secured by a first lien | $2,660 | $3,188 | $3,144 | |||
| 5.875% Senior Unsecured Notes due 7/15/2026 | 10 | 10 | ||||
| 7.000% Senior Unsecured Notes due 5/15/2027 | 671 | 528 | ||||
| 4.750% Senior Unsecured Notes due 10/15/2030 | 800 | 790 | ||||
| 5.375% Senior Unsecured Notes due 11/15/2031 | 1,300 | 1,219 | ||||
| Total outstanding principal, including current portion | $6,210 | $5,969 | $5,691 | |||
The extent of future repurchases, including the amount and timing of any repurchases, will depend on general market conditions, regulatory requirements, alternative investment opportunities and other considerations. This repurchase program supersedes any previous repurchase authorization, does not require us to repurchase a minimum amount of debt, and it may be modified, suspended or terminated at any time without prior notice.
