07.16.2008 12:04 PM
Gray Television Issues $25 Million in Stock
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.

Post New Comment
If you are already a member, or would like to receive email alerts as new comments are
made, please login or register.

Enter the code shown above:

(Note: If you cannot read the numbers in the above
image, reload the page to generate a new one.)

No Comments Found

Tuesday 03:07 PM
WMUR-TV Says FAA Drone Rules Preclude ENG
The FAA’s current rules and proposed ban on flight over people, requirement of visual line of sight and restriction on nighttime flying, effectively prohibit broadcasters from using UAS for newsgathering. ~ WMUR-TV General Manager Jeff Bartlett

Featured Articles
Discover TV Technology