By Abigail W. Adams
Portland, Me., Nov. 1 – Gray Television Inc. sold an upsized $750 million of long eight-year senior notes at par to yield 7% (B3/B+/BB-) in a quick-to-market Thursday trade, according to market sources.
The deal size was increased from $500 million. Pricing came on top of revised talk of 7%.
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 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 may be redeemed prior to May 15, 2022 with a make whole premium.
The notes are callable from May 15, 2022 to May 15, 2023 at 105.25; from 2023 to 2024 at 103.5; from 2024 to 2025 at 101.75 and at par thereafter.
The notes have a poison put of 101%.
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.
| Issuer: | Gray Television Inc.
|
| Amount: | $750 million
|
| Maturity: | May 15, 2027
|
| Securities: | Senior notes
|
| Bookrunners: | Wells Fargo Securities LLC (lead left), BofA Merrill Lynch, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and RBC Capital Markets LLC
|
| Coupon: | 7%
|
| Price: | Par
|
| Yield: | 7%
|
| Spread | 389 bps
|
| First call: | Make-whole call until May 15, 2022, then callable at 105.25 in year one, 103.5 in year two, 101.75 in year three and then at par
|
| Equity clawback: | 35% at 107 until Nov. 15, 2021
|
| Trade date: | Nov. 1
|
| Settlement date: | Nov. 16
|
| Ratings: | Moody's: B3
|
| S&P: B+
|
| Fitch: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 7% revised from 7% to 7½%
|
| Marketing: | Quick to market
|
© 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.
