Gray Television, Inc. Increases Capacity of Existing Senior Credit Facility
November 29 2005 - 5:04PM
PR Newswire (US)
ATLANTA, Nov. 29 /PRNewswire-FirstCall/ -- Gray Television, Inc.
(NYSE: GTN; GTN.A) announced today that it has amended its existing
senior credit facility. The amendment increases the total amount
available under the amended senior credit facility from $400
million to $600 million. The amended agreement has a maximum term
of seven years and consists of a $100 million revolving facility, a
$150 million term loan A facility and a $350 million term loan B
facility. In addition, an incremental loan facility is also made
available under the senior credit facility in the maximum amount of
$400 million. Gray may use the proceeds from the credit facilities
to finance the previously announced acquisition of WSAZ-TV, to
refinance the indebtedness under the previous senior credit
facility, working capital needs, investments, acquisitions and
other general corporate purposes as permitted under the facility.
Certain loan covenants and other terms of the senior credit
facility were also modified by the amendment. Gray's interest rate
is based on the lender's base rate (generally reflecting the
lender's prime rate) plus the specified margin or a London
Interbank Offered Rate ("LIBOR") plus a specified margin. The
specified margin for revolving and term loan A advances is
determined by Gray's debt leverage ratio as defined in the
agreement. Margin Range for Margin Range for Base Rate Advances
LIBOR Rate Advances Revolving and term A advances 0% to 0.25%
0.625% to 1.5% Term B advances 0% to 0.25% 1.25% to 1.5% Gray has
elected to borrow these funds under its LIBOR option. The interest
rate under this option is LIBOR plus the current margin of 1.25%
for revolving and term loan A advances and a margin of 1.5% for
term loan B advances. The amount outstanding under the senior
credit facility as of November 29, 2005 is $380 million and is
allocated as follows: revolving loan of $30 million and term loan B
of $200 million. Gray intends to use the currently un-drawn $150
million term loan A commitment and additional borrowings under the
revolving loan to fund the $186 million acquisition of WSAZ-TV.
Wachovia Bank, National Association served as administrative agent
and as a lender, Wachovia Capital Markets, LLC served as sole lead
arranger and as sole book runner, Bank of America, NA served as
syndication agent and as a lender, Deutsche Bank Trust Company
Americas, Allied Irish Banks PLC, KeyBank National Association and
Goldman Sachs Credit Partners L.P. served as documentation agents
and as lenders. Gray Television, Inc. is a television broadcast
company headquartered in Atlanta, Georgia. Including the pending
acquisitions of WSAZ-TV and WNDU-TV, Gray operates 36 television
stations serving 30 markets. Each of the stations are affiliated
with either CBS, NBC, ABC or FOX. In addition Gray currently
operates seven digital multi-cast television channels which are
affiliated with either UPN or FOX. 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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