Gray Television (NYSE:GTN) has issued another round of shares to help pay down its debt. The Atlanta television group issued $25 million worth of Series D preferred stock in a private placement in order to make a voluntary prepayment on its outstanding term loan. Net proceeds from the placement totaled about $23 million, which reduced Gray“s term loan balance to $832.5 million.

Gray issued $75 million in Series D shares in late June, raising $69 million in the process—money that was also thrown at the term loan. The group“s total Series D liquidation value stands at $100 million. Its weighted average cost of capital for outstanding debt and the 1,000 shares of Series D is around 6.5 percent.

“We believe this overall cost of capital compares favorably to that of other leveraged television broadcast companies,” Gray said in its issuance announcement.

The Series D stock will pay 12 percent quarterly dividends starting Oct. 15, increasing to 15 percent as of Jan. 1, 2009. Wachovia Securities advices Gray, which owns and operates 36 network-affiliated TV stations in 30 markets.