ATLANTA, March 31 /PRNewswire-FirstCall/ -- Gray
Television, Inc. ("Gray," the "Company," "we" or "us") (NYSE: GTN)
today announced that the Company and its lenders have entered into
an amendment to Gray's senior credit facility. The amendment
resets the applicable leverage ratio test, modifies certain other
terms of the facility, and is intended to provide the Company with
additional operating flexibility thereunder in the future.
"We are pleased to have the support of our lenders in amending
our senior credit facility," said Robert S.
Prather, Jr., President and Chief Operating Officer.
"This amendment provides additional flexibility to improve
our capital structure, and to strategically access the capital
markets, subject to market and other conditions, to enable us to
repay existing obligations, and strengthens our position as we move
forward in these challenging economic conditions."
Among other things, the senior credit facility amendment
increases the Company's flexibility under the maximum total net
leverage ratio covenant with which it must comply, immediately
setting the leverage ratio at 9.00 for the quarter ending
March 31, 2010, and also reduces the
lenders' revolving commitments thereunder from $50.0 million to $40.0 million. In
addition, the amendment provides the Company with additional
flexibility to issue certain debt securities, with the proceeds
thereof to be used to repay outstanding amounts under the senior
credit facility.
Pursuant to the amendment, from and after the time the Company
completes a new debt issuance and repays at least $200.0 million of existing obligations under the
senior credit facility, the Company would obtain further operating
and financial flexibility, including the elimination of the
requirement to comply with the total net leverage ratio covenant,
which will be replaced with a first lien leverage test and a
minimum fixed charge coverage ratio, and the elimination or
reduction of certain additional fees paid by the Company under the
senior credit facility as amended.
Further details of the senior credit facility amendment will be
available in a report to be filed with the SEC as soon as
practicable.
Gray Television, Inc.
Gray Television, Inc. is a television broadcast company
headquartered in Atlanta, Georgia.
We currently operate 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, we currently operate 39 digital second channels including
1 ABC, 4 FOX, 7 CW, 18 MyNetworkTV, 2 Universal Sports Network
affiliates and 7 local news/weather channels in certain of our
existing markets.
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 fact, and may include, among other things, statements
regarding our current expectations and beliefs concerning operating
results, future revenues and expenses, the provisions contained in
our senior credit facility as amended, the timing, costs and
ability to consummate any future transactions, 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 March 31, 2010. 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 is 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,
2008 and in subsequently filed quarterly reports on Form
10-Q, which are on file with the SEC and available at the SEC's
website at www.sec.gov.
SOURCE Gray Television, Inc.