Gray Announces Proposed Refinancing of Senior Credit Facilities, Updates Guidance for Fourth Quarter 2023, and Announces Anticipated Proceeds from Sale of BMI
30 1월 2024 - 8:45PM
Gray Television, Inc. (“Gray,” “we,” “us” or “our”) (NYSE:
GTN) announced today that it is proposing, subject to
market and other conditions, to refinance certain of its existing
senior credit facilities (the “Senior Credit Facilities”). Gray
also announced updates to certain of its previously announced
guidance for the fourth quarter of 2023, based on preliminary
information available to date.
Refinancing. Today, Gray commenced a
process through which it expects to amend certain terms of its
$1.19 billion term loan and $500 million revolving credit facility
due 2026, including extending the maturity of its $1.19 billion
term loan from January 2026 to July 2029 and its $500 million
revolving credit facility from January 2026 to December 2027. We
cannot provide any assurance about the timing, terms, or interest
rate associated with the planned financing, or that the financing
transactions will be completed.
Updated Guidance. Gray initially issued
guidance for fourth quarter 2023 on November 8, 2023. While Gray is
continuing the process of finalizing its financial results for the
fourth quarter of 2023, Gray provides the following updates to its
guidance on its estimated results of operations representing the
most current information and estimates available to Gray as of the
date of this release.
Selected operating
data: |
Low End Guidance
for the Fourth Quarter
of 2023 |
|
% Change From Previous Guidance for
the Fourth Quarter
of 2023 |
|
|
High End Guidance
for the Fourth Quarter
of 2023 |
|
% Change From Previous Guidance for
the Fourth Quarter
of 2023 |
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OPERATING REVENUE: |
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Broadcasting Revenue (less agency commissions) |
$ |
830 |
|
1 |
% |
|
$ |
835 |
|
0 |
% |
|
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|
|
|
Total Revenue (less agency commissions) |
$ |
860 |
|
1 |
% |
|
$ |
865 |
|
0 |
% |
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OPERATING EXPENSES: |
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(before depreciation, amortization and gain on disposal of
assets): |
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Broadcasting |
$ |
600 |
|
-1 |
% |
|
$ |
605 |
|
-1 |
% |
Production companies |
$ |
26 |
|
0 |
% |
|
$ |
28 |
|
0 |
% |
Corporate and administrative |
$ |
30 |
|
-14 |
% |
|
$ |
35 |
|
-13 |
% |
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As of December 31, 2023, we currently expect to report
approximately:
- $21 million of cash on hand
- $2,660 million principal amount of secured debt; and
- $6,210 million principal amount of total debt (excluding
unamortized deferred financing costs and premium).
We currently anticipate that we will record a pre-tax, non-cash
impairment of $21 million for certain investments made prior to
calendar year 2023. In addition, we anticipate that our total
leverage ratio, as defined under our Senior Credit Facility,
measured on a trailing eight quarter basis, netting all cash on
hand, and giving pro forma effect for all acquisitions completed
through the date of this release, will be between 5.60 times and
5.65 times as of December 31, 2023.
We have not yet completed our normal financial closing and
review process; therefore, these estimates are subject to change
upon finalization. As a result, our actual results may be different
and such differences could be material. Investors should exercise
caution in relying on the information contained herein and should
not draw any inferences from this information regarding financial
or operating data that is not presented below.
Anticipated BMI Proceeds. We expect to receive
approximately $110 million in pre-tax cash proceeds upon the
closing of the previously announced sale of Broadcast Music,
Inc. (“BMI”) to a shareholder group led by New Mountain Capital,
LLC. Gray’s equity ownership in BMI began decades ago and has
increased through various acquisitions of other broadcast stations
and companies over the years. We understand that BMI’s sale remains
subject to customary regulatory and other approvals and is
currently expected to close by the end of the first quarter 2024.
We intend to use the proceeds for general corporate purposes, which
may include the repayment of debt.
About Gray:
Gray Television, Inc. is a multimedia company headquartered in
Atlanta, Georgia. Gray is the nation’s largest owner of top-rated
local television stations and digital assets in the United States.
Its television stations serve 113 television markets that
collectively reach approximately 36 percent of US television
households. This portfolio includes 80 markets with the top-rated
television station and 102 markets with the first and/or second
highest rated television station. Gray also owns video program
companies Raycom Sports, Tupelo Media Group, and PowerNation
Studios, as well as the studio production facilities Assembly
Atlanta and Third Rail Studios. Gray owns a majority interest in
Swirl Films. For more information, please visit www.gray.tv.
Cautionary Statements for Purposes of the “Safe Harbor”
Provisions of the Private Securities Litigation Reform
Act
This press release contains certain forward-looking statements
that are based largely on Gray’s current expectations and reflect
various estimates and assumptions by Gray. These statements are
statements other than those of historical fact, and may be
identified by words such as “estimates,” “expect,” “anticipate,”
“will,” “implied,” “assume” and similar expressions.
Forward-looking statements are subject to certain risks, trends and
uncertainties that could cause actual results and achievements to
differ materially from those expressed in such forward-looking
statements. Such risks, trends and uncertainties, which in some
instances are beyond Gray’s control, include Gray’s current
expectations and beliefs of operating results for the fourth
quarter of 2023 or other periods, Gray’s ability to complete its
proposed refinancing of its Credit Facilities and receive the
anticipated proceeds from the sale of BMI, on the terms and within
the timeframe currently contemplated, and other future events. Gray
is subject to additional risks and uncertainties described in
Gray’s quarterly and annual reports filed with the Securities and
Exchange Commission from time to time, including in the “Risk
Factors,” and management’s discussion and analysis of financial
condition and results of operations sections contained therein,
which reports are made publicly available via its website,
www.gray.tv. Any forward-looking statements in this communication
should be evaluated in light of these important risk factors. This
press release reflects management’s views as of the date hereof.
Except to the extent required by applicable law, Gray undertakes no
obligation to update or revise any information contained in this
communication beyond the date hereof, whether as a result of new
information, future events or otherwise.
Gray Contacts:
Jim Ryan, Executive Vice President and Chief
Financial Officer, 404-504-9828Kevin P. Latek,
Executive Vice President, Chief Legal and Development Officer,
404-266-8333
Gray Television (NYSE:GTN)
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