Gray Announces Upsizing and Pricing of $775 Million of 7.250% Senior Secured First Lien Notes due 2033
Rhea-AI Summary
Gray Media (NYSE: GTN) has announced the pricing of $775 million in senior secured first lien notes due 2033, representing a $75 million increase from the previously announced amount. The notes carry a 7.250% interest rate and were priced at 100% of par.
The offering, expected to close on July 25, 2025, will be used to repay portions of Gray's term loans D and F, clear outstanding revolving credit facility debt, cover offering expenses, and support general corporate purposes. The notes will be guaranteed by Gray's existing and future restricted subsidiaries that guarantee its current senior credit facility.
Positive
- Successful upsizing of the offering by $75 million indicates strong investor demand
- Strategic debt refinancing could improve debt structure and maturity profile
- 100% par pricing suggests favorable market reception
Negative
- High interest rate of 7.250% represents significant borrowing cost
- Additional secured debt could limit future financing flexibility
- Increased debt burden may impact company's financial leverage
News Market Reaction – GTN
In the trading session that priced this news, GTN gained 7.93%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
ATLANTA, July 22, 2025 (GLOBE NEWSWIRE) -- Gray Media, Inc. (“Gray”) (NYSE: GTN) announced today the pricing of its previously announced private offering of
The Notes are being offered to (i) repay a portion of Gray’s term loan D due December 1, 2028, (ii) repay a portion of Gray’s term loan F due June 4, 2029, (iii) repay all outstanding indebtedness drawn under Gray's revolving credit facility, (iv) pay fees and expenses in connection with the offering, and (v) for general corporate purposes.
The Notes will be guaranteed, jointly and severally, on a senior secured first lien basis, by each existing and future restricted subsidiary of Gray that guarantees Gray’s existing senior credit facility.
The Notes and related guarantees will be offered only to persons reasonably believed to be 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.
Forward-Looking Statements:
This press release contains certain forward-looking statements that are based largely on Gray’s current expectations and reflect various estimates and assumptions by Gray. These statements are statements other than those of historical fact and may be identified by words such as “estimates,” “expect,” “anticipate,” “will,” “implied,” “intend,” “assume” and similar expressions. Forward-looking statements are subject to certain risks, trends and uncertainties that could cause actual results and achievements to differ materially from those expressed in such forward-looking statements. Such risks, trends and uncertainties, which in some instances are beyond Gray’s control, include Gray’s ability to consummate the offering of notes; the intended use of proceeds of the offering; and other future events. Gray is subject to additional risks and uncertainties described in Gray’s quarterly and annual reports filed with the Securities and Exchange Commission from time to time, including in the “Risk Factors,” and management’s discussion and analysis of financial condition and results of operations sections contained therein, which reports are made publicly available via its website, www.graymedia.com. Any forward-looking statements in this communication should be evaluated in light of these important risk factors. This press release reflects management’s views as of the date hereof. Except to the extent required by applicable law, Gray undertakes no obligation to update or revise any information contained in this communication beyond the date hereof, whether as a result of new information, future events or otherwise.
Gray Contacts:
Jeffrey R. Gignac, Executive Vice President and Chief Financial Officer, 404-504-9828
Kevin P. Latek, Executive Vice President, Chief Legal and Development Officer, 404-266-8333
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