Gray Television, Inc. Issues an Additional $25 Million of Series D Perpetual Preferred Stock
July 15 2008 - 5:47PM
PR Newswire (US)
ATLANTA, July 15 /PRNewswire-FirstCall/ -- Gray Television, Inc.
("we", "us" or "our") (NYSE:GTNNYSE:andNYSE:GTN.A) announced today
that we have issued an additional $25 million liquidation value of
our Series D Perpetual Preferred Stock (the "Series D Preferred
Stock") in a privately placed transaction to qualified investors.
We received approximately $23 million in net proceeds after
issuance discounts and transaction expenses. We used the $23
million of net proceeds from the issuance to make a voluntary
permanent prepayment of our outstanding term loan. We previously
issued $75 million of our Series D Preferred stock on June 26,
2008. We have issued this additional $25 million of Series D
Preferred stock in response to the strong investor demand for this
security at the time of our initial offering. Our total weighted
average cost of capital for our outstanding debt and 1,000 shares
of Series D Preferred Stock is approximately 6.5%. We believe this
overall cost of capital compares favorably to that of other
leveraged television broadcast companies. After this $23 million
voluntary permanent reduction to our outstanding term loan balance,
our outstanding term loan balance is $832.5 million and the
liquidation value of our Series D Preferred Stock is $100.0
million. Our 1,000 shares of Series D Preferred Stock is the only
issue of preferred stock we currently have authorized, issued and
outstanding. The Series D Preferred Stock dividends will be paid
quarterly in cash on April 15, July 15, October 15 and January 15
of each year, commencing October 15, 2008, at a rate per annum
initially equal to 12.0%, increasing to 15.0% on January 1, 2009,
payable in arrears on a cumulative basis. Wachovia Securities acted
as our financial advisor and placement agent on the Series D
Preferred Stock issuance. Gray Television, Inc. is a television
broadcast company headquartered in Atlanta, GA. Gray currently
operates 36 television stations serving 30 markets. Each of the
stations are affiliated with either CBS (17 stations), NBC (10
stations), ABC (8 stations) or FOX (1 station). In addition, Gray
currently operates 40 digital second channels including 1 ABC, 5
Fox, 8 CW and 16 MyNetworkTV affiliates plus 8 local news/weather
channels and 2 "independent" channels in certain of its existing
markets. DATASOURCE: Gray Television, Inc. CONTACT: Bob Prather,
President, +1-404-266-8333, or Jim Ryan, Chief Financial Officer,
+1-404-504-9828, both of Gray Television, Inc. Web site:
http://www.gray.tv/
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