Gray Media plans to offer $700 million in senior notes

ATLANTA - Gray Media, Inc. (NYSE:GTN), a media company with a market capitalization of $525 million and currently trading at historically low valuations according to InvestingPro, announced Tuesday its intention to offer up to $700 million in senior secured first lien notes due 2033, subject to market conditions.

The media company, which currently carries total debt of $5.7 billion, plans to use the net proceeds from the offering, along with borrowings under its revolving credit facility, to repay portions of its term loan D due December 2028 and term loan F due June 2029.

The notes will be exempt from registration requirements under the Securities Act of 1933 and will be guaranteed jointly and severally on a senior secured first lien basis by Gray’s existing and future restricted subsidiaries that guarantee its current senior credit facility.

According to the press release, the notes and related guarantees will only be offered 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.

The company noted that 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 from registration requirements.

Gray Media operates television stations and digital properties in over 100 markets across the United States. The company generates $3.6 billion in annual revenue and offers shareholders a substantial 6.46% dividend yield. Get detailed insights and 12 additional exclusive ProTips with InvestingPro.

In other recent news, Gray Media has raised its second-quarter revenue forecast, now expecting total revenue of $826 million for the quarter ended June 30, compared to $775 million in the same period last year. The company also announced plans to record a $29 million non-cash impairment charge related to its Atlanta station, WANF. Additionally, Gray Media has increased the aggregate commitments under its revolving credit facility by $50 million, bringing it to a total of $750 million, with the facility’s maturity date extended to December 1, 2028. In another development, Gray Media and The E.W. Scripps Company have agreed to swap television stations across five markets, allowing both broadcasters to create new duopolies. Gray will acquire Scripps’ WSYM in Lansing, Michigan, and KATC in Lafayette, Louisiana, while Scripps will obtain several of Gray’s stations in Colorado and Idaho. Furthermore, Gray Media has renewed its affiliation agreements with CBS for 52 of its network stations, ensuring their continued accessibility on Paramount+ and other platforms. However, it was announced that Gray’s Atlanta station, WANF, will end its CBS network affiliation on August 16, 2025, and will operate as an independent station focusing on local content.

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