ATLANTA: Gray Television plans to offer $365 million worth of senior secured second lien notes due 2015 in a private placement. The transaction follows a last March agreement between Gray and senior lenders allowing it to issue certain debt securities. The notes will be secured on a second-lien basis, subject to certain exceptions, by Gray and its existing and certain future subsidiaries.
The private placement will be exempt from Securities and Exchange registration requirements, and be offered to only qualified institutional buyers. Gray will used the net proceeds to repay part of its debt; repurchase outstanding Series D stock, plus related fees and expenses.
Gray was near default in March when it worked out a deal with senior lenders to reduce its leverage and debt and issue new securities to pay down old ones. Gray owns and/or operates 36 TV stations. It cut its losses for 2009 and for the fourth quarter of that year.
Gray’s full-year loss was $40.2 million compared to $208.6 million in 2008. Full-year revenues were $270.4 million, down 17 percent. For 4Q09, Gray posted a net loss of $6.5 million compared to $206 million in 4Q08, when it took a $338.7 million impairment charge.
More on Gray:
April 6, 2010:“Gray Television Cuts Losses in 2009”
After a rough month in which Gray Television narrowly diverted default, the broadcast group posted reduced losses for the fourth quarter of 2009 and the full year.
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