ATLANTA, March 27, 2017 /PRNewswire/ -- Gray
Television, Inc. ("Gray," "we," "us" or "our") (NYSE: GTN and
GTN.A) announced today that it is proposing, subject to market
and other conditions, to add on $85
million to its existing term loan under its current senior
credit facility (the "Senior Credit Facility"). The proposed
addition to our existing term loan would be used to fund our
previously announced acquisition of two television stations from
Diversified Communications ("Diversified") and other general
corporate purposes. We anticipate the terms of the proposed
term loan addition will be essentially the same as our existing
term loan.
On February 16, 2017, we announced
that we had reached an agreement with Diversified to acquire WABI
(CBS/CW) in the Bangor, Maine
market (DMA 156) and WCJB (ABC/CW) in the Gainesville, Florida market (DMA 161) for a
total purchase price of $85
million. The transaction represents an attractive
purchase price multiple of less than 7.0 times expected blended
2016-2017 pro forma broadcast cash flow, including expected
synergies. Subject to receipt of regulatory and other
approvals, we expect the transaction will close in the second
quarter of 2017.
On February 6, 2017, we announced
that we anticipate receiving $90.8
million in proceeds resulting from the Federal Communication
Commission's recently completed reverse auction for broadcast
spectrum. The anticipated proceeds reflect the FCC's acceptance of
one or more bids placed by Gray during the auction to modify and/or
surrender spectrum used by certain of our television
stations. We anticipate that the proceeds will be received by
Gray in the second or third quarter of 2017. Due to prior
planning in connection with our recently completed acquisitions, we
anticipate that we will be able to defer any associated taxes on a
long-term basis.
About Gray:
Gray currently 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 for Purposes of the "Safe Harbor"
Provisions of the Private Securities Litigation Reform Act
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 of the proposed
add-on to our Senior Credit Facility term loan, pending
acquisitions, results of the FCC spectrum auction, the impact of
recently completed transactions, 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 of this
release. 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, 2016 and may be
contained in reports subsequently filed with the U.S. Securities
and Exchange Commission (the "SEC") and available at the SEC's
website at www.sec.gov.
www.gray.tv
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SOURCE Gray Television, Inc.