Gray Media plans $750 million senior secured second lien notes offering

Published 08/07/2025, 13:38
Gray Media plans $750 million senior secured second lien notes offering

ATLANTA - Gray Media, Inc. (NYSE:GTN), a media company currently trading at attractive valuation multiples according to InvestingPro data, announced Tuesday its intention to offer up to $750 million in senior secured second lien notes due 2032, subject to market conditions. The company, which has demonstrated strong financial health with an overall score of "GREAT" on InvestingPro’s metrics, currently maintains a total debt position of $5.7 billion.

The media company also plans to increase commitments under its revolving credit facility by $50 million to $750 million total and extend the facility’s maturity date from December 1, 2027, to December 1, 2028.

Gray intends to use the net proceeds from the notes offering, combined with borrowings under its revolving credit facility, to redeem all outstanding 7.000% senior notes due 2027, repay a portion of its term loan F due June 4, 2029, and cover fees and expenses related to the offering.

The notes will be guaranteed jointly and severally on a senior secured second lien basis by Gray’s existing and future restricted subsidiaries that guarantee the company’s existing senior credit facility.

According to the press release, the notes will be offered only to qualified institutional buyers under Rule 144A of the Securities Act and to non-U.S. persons in transactions outside the United States under Regulation S of the Securities Act.

The offering will be exempt from registration requirements of the Securities Act of 1933. The notes have not been registered under the Securities Act and may not be offered or sold in the United States without registration or an applicable exemption.

The company noted that while the notes offering is not conditioned on the revolving credit facility amendment, the amendment’s completion depends on the closing of the notes offering and is subject to customary closing conditions. Over the past six months, Gray Media has shown impressive market performance with a 39% price return. Investors seeking deeper insights into GTN’s financial health, debt metrics, and growth potential can access comprehensive analysis through InvestingPro’s detailed research reports, which cover over 1,400 US stocks.

In other recent news, Gray Media has reported a narrower-than-expected loss for the first quarter of 2025. The company posted an earnings per share (EPS) of -$0.23, outperforming the forecasted -$0.43, while revenue reached $782 million, surpassing the projected $773.05 million. Meanwhile, Gray Media and The E.W. Scripps Company have agreed to swap television stations across five markets, allowing both broadcasters to create new duopolies. This transaction, which involves an even exchange of comparable assets with no cash consideration, is expected to close in the fourth quarter of 2025, pending regulatory approvals.

Additionally, Gray Media and CBS have renewed their affiliation agreements for 52 of Gray’s CBS network stations, although Gray’s Atlanta station WANF will end its CBS network affiliation in August 2025. In other developments, Gray Media has reshuffled its general management in Nebraska, appointing Shannon Booth as the new General Manager of WOWT in Omaha and Jacque Harms as General Manager of several stations in Lincoln and North Platte. These moves are part of Gray Media’s ongoing commitment to leadership and excellence in the broadcasting industry.

Lastly, analyst firms have noted Gray Media’s strategic efforts in cost-saving measures, which have resulted in $60 million in annualized savings. The company is also exploring potential mergers and acquisitions to strengthen its market position amidst anticipated regulatory changes. These developments reflect Gray Media’s strategic focus on maintaining a competitive edge in the dynamic landscape of television broadcasting.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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