Gray Television talks $500 million long eight-year notes at 7%-7½%

By Abigail W. Adams

Portland, Me., Nov. 1 – Gray Television Inc. talked its $500 million offering of long eight-year senior notes (B3/B-/BB-) to yield 7% to 7½%, according to a market source.

Official price talk comes on top of early guidance in the low 7% area, according to market sources.

Books were scheduled to close at 2 p.m. ET with pricing thereafter.

The deal was marketed via an investor conference call.

Wells Fargo Securities LLC is the left lead for the Rule 144A and Regulation S for life offering.

BofA Merrill Lynch, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and RBC Capital Markets LLC are joint bookrunners.

The senior notes due May 2027 are non-callable for 3.5 years. First call is at par plus 75% of the coupon.

A concurrent term loan was downsized to $1.65 billion from $2.15 billion with proceeds shifted to the senior notes offering.

Proceeds will be used to fund the acquisition of Raycom Media Inc. and refinance debt.

Gray Television is an Atlanta-based television broadcasting company.

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