Gray Communications to hold bank meeting Monday for $450 million credit facility

By Sara Rosenberg

New York, Sept. 5 - Gray Communications Systems Inc. is scheduled to hold a bank meeting Monday afternoon regarding its new $450 million senior secured credit facility, according to a syndicate source. Wachovia is listed on the left as the lead bank on the deal.

Market sources said Bank of America will act as co-lead on the facility and Deutsche Bank will act as documentation agent on the deal. However, this information was not confirmed.

The loan consists of a $375 million eight-year term loan B with an interest rate of Libor plus 325 basis points and a $75 million seven-year revolver with an interest rate of Libor plus 300 basis points, the syndicate source said.

Basically all assets will be used to secure the loan.

Proceeds will be used to help fund the acquisition of 15 stations from Stations Holding Co., the parent company of Benedek Broadcasting.

Moody's Investors Service rates the Atlanta, Ga. communications company's loan Ba3 and Standard & Poor's rates it B+

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.