ATLANTA, Feb. 7, 2017 /PRNewswire/ -- Gray Television,
Inc. ("Gray," "we," "us" or "our") (NYSE: GTN and GTN.A) today
completed its previously announced refinancing of its Revolving
Credit Facility and Term Loan B through entry into the third
amendment and restatement of our senior credit facility (the
"Senior Credit Facility"). This refinancing, which did not
increase our total outstanding indebtedness, is expected to reduce
cash interest expense by approximately $3.8
million annually.
Under the restated Revolving Credit Facility, we have obtained
$100 million in aggregate borrowing
commitments, with a maturity date on amounts outstanding thereunder
of February 7, 2022. Our
maximum borrowing availability under our Revolving Credit Facility
is limited by our required compliance with certain restrictive
covenants, including a first lien net leverage ratio covenant and
maintenance of a total first lien net leverage ratio, not to exceed
certain maximum limits while any amount is outstanding under the
Revolving Credit Facility. As of the date hereof, we did not
have any amounts outstanding under the Revolving Credit
Facility.
The new Term Loan B has a principal balance of $556.4 million with a final maturity date of
February 7, 2024. Amounts
outstanding were used to repay amounts outstanding under our prior
term loan. As amended, the annual interest rate on Term Loan
B borrowings is currently LIBOR plus 2.50 percent. The annual
interest rate will decrease to LIBOR plus 2.25 percent when, and
if, our total leverage ratio (as defined in the Senior Credit
Agreement) equals 5.25 or less. The Term Loan B requires
quarterly principal reductions of $1.391
million beginning March 31,
2017.
Consistent with the terms of our prior credit facility, our
obligations under the Senior Credit Facility are secured by
substantially all of our consolidated subsidiaries' assets,
excluding real estate. In addition, all of our subsidiaries
are joint and several guarantors of, and our ownership interests in
those subsidiaries are pledged to collateralize, our obligations
under the Senior Credit Facility.
Also consistent with our prior credit facility, the Senior
Credit Facility contains affirmative and restrictive covenants with
which we must comply, including (a) limitations on additional
indebtedness, (b) limitations on liens, (c) limitations on the sale
of assets, (d) limitations on guarantees, (e) limitations on
investments and acquisitions, (f) limitations on the payment of
dividends and share repurchases and (g) limitations on mergers, as
well as other customary covenants for credit facilities of this
type.
About Gray:
Gray owns and/or operates 100 television stations across 54
television markets that collectively broadcast over 200 program
streams including 101 channels affiliated with the CBS Network, the
NBC Network, the ABC Network and the FOX Network. Our
portfolio includes the number-one and/or number-two ranked
television station operations in essentially all of our markets,
which collectively cover approximately 10.1 percent of total
United States television
households.
Cautionary Statements Regarding Forward Looking
Statements
This press release contains statements that constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995 and the federal securities
laws. These "forward-looking statements" are not statements of
historical facts, and may include, among other things, statements
regarding our current expectations and beliefs relating to our
Senior Credit Facility, future expenses and other future events.
Actual results are subject to a number of risks and uncertainties
and may differ materially from the current expectations and beliefs
discussed in this press release. All information set forth in this
release is as of the date hereof. We do not intend, and undertake
no duty, to update this information to reflect future events or
circumstances. Information about certain potential factors that
could affect our business and financial results and cause actual
results to differ materially from those expressed or implied in any
forward-looking statements are included under the captions "Risk
Factors" and "Management's Discussion and Analysis of Financial
Condition and Results of Operations," in our Annual Report on Form
10-K for the year ended December 31,
2015 and may be contained in reports subsequently filed with
the U.S. Securities and Exchange Commission and available at the
SEC's website at www.sec.gov.
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SOURCE Gray Television, Inc.