Gray Television reduced debt by $278 million, authorized $250 million for future repurchases, and anticipates lower cash interest expenses.
Quiver AI Summary
Gray Television, Inc. announced that it has successfully reduced its outstanding debt by $278 million since October 1, 2024, totaling a $519 million decrease since the beginning of the year. In light of this substantial debt reduction, the Board of Directors has authorized an increase in the company's debt repurchase program to replenish $250 million for repurchasing outstanding debt. Since November 8, 2024, Gray has utilized about $204 million of cash to retire approximately $239 million in principal debt across several maturities. The company anticipates that these efforts will lead to significant savings on cash interest expenses moving forward. Future repurchases will depend on market conditions and other factors, and the program may be adjusted or terminated at any time. Gray Media is the largest owner of local television stations in the U.S., serving a wide array of markets and also operates a digital marketing agency.
Potential Positives
- Gray Television has successfully reduced its outstanding debt by $278 million since October 1, 2024, contributing to a total reduction of $519 million for the year, which enhances the company's financial stability.
- The Board of Directors has authorized an increase in the debt repurchase authorization to $250 million, allowing for greater flexibility in managing future debt levels.
- The significant debt reduction is expected to lead to a substantial decrease in cash interest expenses, improving overall profitability in the coming years.
- Gray Media continues to maintain a strong position in the television industry, being the largest owner of local television stations, which could attract investor confidence and support future growth initiatives.
Potential Negatives
- Despite significant debt reduction, the company still has a total outstanding principal of $6.21 billion, indicating a substantial level of debt remains.
- The repurchase program does not ensure a minimum amount of debt will be repurchased and can be modified or terminated at any time, which may signal uncertainty in the company's financial strategy.
- Forward-looking statements include risks related to the company's ability to continue repurchasing debt as planned, which introduces uncertainty regarding future financial stability.
FAQ
What recent transactions has Gray Television completed?
Gray Television has completed transactions reducing its debt by $278 million since October 1, 2024, totaling $519 million since January 1, 2024.
How much debt repurchase authorization has Gray increased?
The Board of Directors authorized an increase to a total of $250 million for debt repurchase authorization.
What impact will debt reduction have on cash interest expenses?
The reduction in outstanding debt is expected to significantly reduce future cash interest expenses for the company.
What types of debt did Gray repurchase recently?
Gray repurchased and retired debt including Term Loan D, 2027 Notes, 2030 Notes, and 2031 Notes totaling approximately $239 million.
Where can I find more information about Gray Television?
Additional information about Gray Television can be found on their official website at .
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$GTN Hedge Fund Activity
We have seen 102 institutional investors add shares of $GTN stock to their portfolio, and 133 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- DARSANA CAPITAL PARTNERS LP removed 4,092,063 shares (-100.0%) from their portfolio in Q3 2024
- UBS GROUP AG removed 2,736,879 shares (-92.1%) from their portfolio in Q3 2024
- ELEQUIN CAPITAL, LP removed 1,757,043 shares (-100.0%) from their portfolio in Q2 2024
- TRIBUTARY CAPITAL MANAGEMENT, LLC removed 1,334,714 shares (-100.0%) from their portfolio in Q3 2024
- CAPITAL MANAGEMENT CORP /VA added 1,170,990 shares (+27.6%) to their portfolio in Q3 2024
- MORGAN STANLEY removed 1,070,022 shares (-23.2%) from their portfolio in Q3 2024
- ARISTEIA CAPITAL, L.L.C. removed 747,595 shares (-100.0%) from their portfolio in Q2 2024
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
ATLANTA, Nov. 20, 2024 (GLOBE NEWSWIRE) -- Gray Television, Inc. ("Gray," "Gray Media," the "Company," "we," "us" or "our") (NYSE: GTN) has completed a series of transactions that collectively reduced the Company's principal amount of debt outstanding by $278 million since October 1, 2024, bringing the Company's total principal debt reduction to $519 million since January 1, 2024. Accordingly, our Board of Directors today has authorized an increase in our previously announced debt repurchase authorization, replenishing the authorization to a total of $250 million of available liquidity to repurchase our outstanding indebtedness. We anticipate that the meaningful reduction in our outstanding debt this year will result in a significant reduction of cash interest expense going forward.
Through various recently completed transactions since November 8, 2024, we have used approximately $204 million of cash on hand to repurchase and retire approximately $239 million of principal amount of debt consisting of:
(a) $5 million of outstanding principal of Term Loan D due December 1, 2028,
(b) $143 million of outstanding principal of 2027 Notes,
(c) $10 million of outstanding principal of 2030 Notes, and
(d) $81 million of outstanding principal of 2031 Notes.
As a result of these transactions, the Company currently has outstanding debt in the following principal amounts:
Principal Amount Outstanding ($ in millions) | December 31, 2023 Actual | September 30, 2024 Actual | November 20, 2024 Actual | |||
Revolving Credit Facility due 12/31/2027 ($680 million commitment) | - | - | ||||
2021 Term Loan due 12/1/2028 (S + 300) | $1,439 | $1,395 | ||||
2024 Term Loan due 6/4/2029 (S + 525) | 499 | 499 | ||||
10.5% Senior Secured Notes due 7/15/2029 | 1,250 | 1,250 | ||||
Total outstanding principal secured by a first lien | $2,660 | $3,188 | $3,144 | |||
5.875% Senior Unsecured Notes due 7/15/2026 | 10 | 10 | ||||
7.000% Senior Unsecured Notes due 5/15/2027 | 671 | 528 | ||||
4.750% Senior Unsecured Notes due 10/15/2030 | 800 | 790 | ||||
5.375% Senior Unsecured Notes due 11/15/2031 | 1,300 | 1,219 | ||||
Total outstanding principal, including current portion | $6,210 | $5,969 | $5,691 |
The extent of future repurchases, including the amount and timing of any repurchases, will depend on general market conditions, regulatory requirements, alternative investment opportunities and other considerations. This repurchase program supersedes any previous repurchase authorization, does not require us to repurchase a minimum amount of debt, and it may be modified, suspended or terminated at any time without prior notice.
Forward-Looking Statements:
This press release contains certain forward-looking statements that are based largely on Gray's current expectations and reflect various estimates and assumptions by Gray. These statements are statements other than those of historical fact and may be identified by words such as "estimates," "expect," "anticipate," "will," "implied," "intend," "assume" and similar expressions. Forward-looking statements are subject to certain risks, trends and uncertainties that could cause actual results and achievements to differ materially from those expressed in such forward-looking statements. Such risks, trends and uncertainties, which in some instances are beyond Gray's control, include Gray's ability to complete its debt repurchasing efforts on the terms and within the timeframe currently contemplated, the reduction of cash interest expenses, and other future events. Gray is subject to additional risks and uncertainties described in Gray's quarterly and annual reports filed with the Securities and Exchange Commission from time to time, including in the "Risk Factors," and management's discussion and analysis of financial condition and results of operations sections contained therein, which reports are made publicly available via its website, . Any forward-looking statements in this communication should be evaluated in light of these important risk factors. This press release reflects management's views as of the date hereof. Except to the extent required by applicable law, Gray undertakes no obligation to update or revise any information contained in this communication beyond the date hereof, whether as a result of new information, future events or otherwise.
About Gray:
Gray Media, or Gray, is a multimedia company headquartered in Atlanta, Georgia, formally known as Gray Television, Inc. The company is the nation's largest owner of top-rated local television stations and digital assets serving 113 television markets that collectively reach approximately 36 percent of US television households. The portfolio includes 77 markets with the top-rated television station and 100 markets with the first and/or second highest rated television station, as well as the largest Telemundo Affiliate group with 43 markets totaling nearly 1.5 million Hispanic TV Households. The company also owns Gray Digital Media, a full-service digital agency offering national and local clients digital marketing strategies with the most advanced digital products and services. Gray's additional media properties include video production companies Raycom Sports, Tupelo Media Group, and PowerNation Studios, and studio production facilities Assembly Atlanta and Third Rail Studios. Gray owns a majority interest in Swirl Films. For more information, please visit
.
Gray Contacts:
Jeff Gignac
, Executive Vice President and Chief Financial Officer, 404-504-9828
Kevin P. Latek
, Executive Vice President, Chief Legal and Development Officer, 404-266-8333
# # #
