Gray Television upsizes eight-year notes offering to $750 million, tightens guidance to 7%

By Abigail W. Adams

Portland, Me., Nov. 1 – Gray Television Inc. upsized its offering of long eight-year senior notes (B3/B-/BB-) to $750 million and tightened guidance to 7%, according to a market source.

The deal size was increased from $500 million. Official price talk was previously 7% to 7½%, which came on top of early guidance in the low 7% area, according to market sources.

The deal, which was marketed via an investor conference call, is expected to price shortly.

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.

The concurrent term loan was downsized to $1.4 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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