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Gray Media Refinances Debt and Extends Maturities to 2030

BullishMedium impact
GTN$4.83 1.26%

Gray Media, Inc. (NYSE:GTN) has finalized a new $600 million Term Loan G maturing on July 15, 2030, and modified its revolving credit facility. The media company reduced the revolving credit facility from $750 million to $680 million while extending its maturity date from December 1, 2028, to July 15, 2030. The new term loan is priced at 350 basis points over the Standard Overnight Financing Rate with a 0.5% original issue discount. Gray used the loan proceeds to pay down a portion of its existing Term Loan D, leaving $150 million outstanding.

This refinancing, paired with an August 2026 issuance of $750 million in senior secured notes, allows the company to extend maturities on more than $1.25 billion of debt. By pushing out these obligations and lowering overall borrowing costs, the company has cleared its schedule of major debt repayments until after the 2026 and 2028 political cycles. Political cycles are typically highly lucrative periods for local television broadcasters due to heavy campaign advertising spend.

Investors should monitor how the company manages its remaining near-term obligations. Its closest remaining debt maturities are now the outstanding $150 million under Term Loan D due in December 2028 and $350 million of senior secured notes due in July 2029. On the day of the announcement, shares of Gray Media, Inc. rose 1.26% to close at $4.83.

Key points

  • Gray Media, Inc. (NYSE:GTN) secured a new $600 million Term Loan G maturing in July 2030.
  • The company reduced its revolving credit facility to $680 million and extended its maturity to July 2030.
  • Proceeds paid down Term Loan D, leaving $150 million outstanding on that facility.
  • The transactions extend maturities on over $1.25 billion of total debt and lower interest costs.
  • The company faces no material debt maturities until after the 2028 political cycle.

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Questions and answers

What are Gray Media's nearest debt maturities?

Following the refinancing, Gray Media's nearest maturities are the remaining $150 million of its Term Loan D due in December 2028 and $350 million of its senior secured first lien notes due in July 2029.

How did Gray Media use the proceeds from its new Term Loan G?

The company used the proceeds from the $600 million Term Loan G to repay a portion of its existing Term Loan D maturing in December 2028 and to pay related transaction fees and expenses.

How did the refinancing affect Gray Media's credit facility?

Gray Media reduced its existing revolving credit facility from $750 million to $680 million and successfully extended its maturity date from December 1, 2028, to July 15, 2030.