The refinancing reduces Gray's highest-cost debt (10.5% 2029 notes) with lower-cost term loan debt (SOFR+3.5%), improving interest expense. However, the incremental term loan increases total secured debt, and the redemption reduces outstanding notes. Monitor the Q3 10-Q for updated leverage ratios and interest expense savings.
Price Chart
Executive Summary
Gray Media entered into an Eighth Amendment to its credit agreement to add a $75 million incremental Term G loan, increasing the Term G facility to $675 million. The proceeds, together with cash on hand, will be used to redeem $150 million of its 10.500% senior secured first lien notes due 2029 at 105.250% of par, plus accrued interest. The redemption is conditioned on the funding of the incremental loan, which is expected by October 19, 2026.
Key Facts
- Gray Media entered into an Eighth Amendment to its credit agreement on October 9, 2026.
- The amendment provides for a $75 million incremental increase to the Term Loan G, bringing the total Term G facility to $675 million.
- The incremental loan is on a delayed-draw basis, with funding expected by October 19, 2026.
- Proceeds from the incremental loan, plus cash on hand, will redeem $150 million of the 10.500% senior secured first lien notes due 2029.
- The 2029 Notes will be redeemed at 105.250% of principal, plus accrued interest.
- After the redemption, Gray expects $200 million of 2029 Notes will remain outstanding.
- The Term G loan bears interest at Term SOFR plus 3.50% or Base Rate plus 0.50%.
- Quarterly principal amortization of 0.25% of the initial Term G loan balance is required.
- The credit agreement contains a financial covenant requiring a maximum consolidated first lien net leverage ratio when revolving loans are outstanding.
Financial Impact
$75 million incremental term loan funded, $150 million of 2029 Notes redeemed at 105.50% of par, plus accrued interest. Net debt unchanged on net basis.
Risk Factors
- Funding of the incremental term loan is conditioned on customary conditions and may not close by October 19, 2026.
- The redemption call premium of 5.25% on $150 million creates a one-time cash cost.
- Increased term loan amortization (0.25% quarterly) adds fixed cash outflow.
- Leverage ratios may remain elevated, limiting financial flexibility.
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001437749-26-032446 |
| Exhibit: ex_1024283.htm | 0001437749-26-032446 |
| Document: gtn20261009_8k.htm | 0001437749-26-032446 |
| Document: 0001437749-26-032446-index-headers.html | 0001437749-26-032446 |
| Document: 0001437749-26-032446-index.html | 0001437749-26-032446 |
| Document: 0001437749-26-032446.txt | 0001437749-26-032446 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 26, 2026 today | Press Release | $4.55 | awaiting T+5 | — | $4.37 (−3.85%) |
Oct 20, 2026 6d ago | Press Release | $4.63 | awaiting T+5 | — | $4.37 (−5.62%) |
Oct 15, 2026 11d ago | Press Release | $4.46 $4.70 | ▲ +5.38% | ▲ +6.40% | $4.37 (−2.02%) |
Oct 9, 2026 17d ago | 8-K | $4.43 $4.48 | ▲ +1.13% | ▲ +2.62% | $4.37 (−1.35%) |
Oct 9, 2026 17d ago | 8-K | $4.54 $4.38 | ▼ −3.52% | ▼ −1.56% | $4.37 (−3.74%) |
Oct 2, 2026 24d ago | Press Release | $4.54 $4.54 | · 0.00% | ▼ −1.16% | $4.37 (−3.74%) |
Sep 28, 2026 28d ago | 8-K | $4.59 $4.63 | ▲ +0.87% | ▼ −0.33% | $4.37 (−4.79%) |
Sep 28, 2026 28d ago | Press Release | $4.59 $4.63 | ▲ +0.87% | ▼ −0.33% | $4.37 (−4.79%) |
Sep 28, 2026 28d ago | Press Release | $4.59 $4.63 | ▲ +0.87% | ▼ −0.33% | $4.37 (−4.79%) |
Sep 23, 2026 4w ago | Press Release | $4.58 $4.50 | ▼ −1.75% | ▼ −1.07% | $4.37 (−4.59%) |
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