Gray Media Raises $900 Million Through Senior Secured Second Lien Notes Offering.

Gray Media, Inc. has completed a $900 million offering of 9.625% senior secured second lien notes due 2032. The proceeds will be used to refinance existing debt, repay a portion of a term loan, and cover expenses. The notes are secured by existing and future subsidiaries of Gray and are not registered under U.S. securities laws. The issuance indicates strong market interest and confidence in the company's financial position, but also raises concerns about the company's significant level of indebtedness.

Gray Media, Inc. (NYSE: GTN) has successfully closed its $900 million offering of 9.625% senior secured second lien notes due 2032 [1]. The notes, issued at par, carry an interest rate of 9.625% and are set to mature on July 15, 2032. The proceeds from this offering will be used to refinance existing debt, repay a portion of the company's term loan, and cover associated fees and expenses.

The company plans to utilize the proceeds to fully redeem its outstanding 7.000% senior notes due 2027 and repay $402.5 million of its Term Loan F, leaving a balance of $90 million. This move aims to extend the company's debt maturity timeline, thus providing enhanced financial flexibility [1].

The issuance of these notes reflects a strategic shift towards locking in fixed rates for an extended period despite the higher interest rate environment. The second lien notes, guaranteed by Gray's restricted subsidiaries, were offered to qualified institutional buyers under Rule 144A and to non-U.S. persons under Regulation S, indicating a private placement approach [1].

While the interest rate on the new notes is higher than the previous 7.000% notes, the financing strategy underscores Gray's commitment to defensive liability management and reducing exposure to potentially variable-rate debt [1].

The successful completion of this offering indicates strong market interest and confidence in Gray Media's financial position. However, the issuance also raises concerns about the company's significant level of indebtedness and reliance on additional borrowing to manage its current financial situation [2].

Reference List:
[1] https://www.gurufocus.com/news/2988492/gray-announces-closing-of-offering-of-900-million-of-9625-senior-secured-second-lien-notes-due-2032-gtn-stock-news
[2] https://www.nasdaq.com/articles/gray-media-inc-completes-900-million-offering-senior-secured-second-lien-notes