New Issue: Gray Television prices $365 million 10½% five-year notes to yield 11%

By Paul A. Harris

St. Louis, April 21 - Gray Television, Inc. priced a $365 million issue of 10½% five-year senior secured second-lien notes (Caa2/CCC/) at 98.085 to yield 11% on Wednesday, according to an informed source.

The yield printed at the tight end of the 11% to 11¼% yield talk. The reoffer price came at the cheap end of the 1 to 2 points of discount talk.

Bank of America Merrill Lynch, Wells Fargo Securities and Citadel Capital were the joint bookrunners.

The Atlanta-based television broadcast company will use the proceeds to repay a portion of its term loans and to repurchase a portion of the outstanding shares of its series D perpetual preferred stock.

Issuer:	Gray Television, Inc.
Face amount:	$365 million
Proceeds:	$358 million (approximate)
Maturity:	June 29, 2015
Securities:	Senior secured second-lien notes
Bookrunners:	Bank of America Merrill Lynch, Wells Fargo Securities, Citadel Capital
Coupon:	10½%
Price:	98.085
Yield:	11%
Spread:	850 bps
Call protection:	Make-whole call at Treasuries plus 50 bps until Nov. 1, 2012, then callable at a premium
Equity clawback:	35% at 110.50 until Nov. 1, 2012
Trade date:	April 21
Settlement date:	April 29
Ratings:	Moody's: Caa2
	Standard & Poor's: CCC
Distribution:	Rule 144A with registration rights
Price talk:	11% to 11¼% all-in-yield with 1-2 points OID

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