ATLANTA, Jan. 20, 2017 /PRNewswire/ -- Gray Television,
Inc. ("Gray," "we," "us" or "our") (NYSE: GTN and GTN.A) announced today that it is proposing, subject to market and other
conditions, to refinance and extend the maturity date of its revolving credit facility and term loan under its existing senior
credit facility (the "Senior Credit Facility"). Gray is also providing updates to certain of its previously announced
guidance for the fourth quarter of 2016, based on preliminary information available to date.
Comments on Proposed Senior Credit Facility Refinancing:
Gray expects to refinance or extend its existing indebtedness through some or all of the following:
- Extension of its revolving credit facility to February 2022 from the current July 2020 maturity and an increase in aggregate commitments to $100 million
from the current $60 million; and
- Extension of the existing $556.4 million term loan maturity to February 2024 from the current June 2021 maturity.
Wells Fargo Bank, N.A. is the administrative agent under our Senior Credit Facility.
We cannot provide any assurance about the timing, terms or interest rate associated with the planned refinancing, or that the
refinancing transactions can be completed at all.
Comments on Previously Announced Acquisitions:
On January 17, 2017, we announced that we had completed the $270
million acquisition of two television stations that had been owned and operated by Media General, Inc. as part of that
company's acquisition by Nexstar Broadcasting Group, Inc.: WBAY (ABC), in Green Bay,
Wisconsin, and KWQC (NBC) in Davenport, Iowa. On January 13th, Gray acquired
KTVF (NBC), KXD (CBS), and KFXF (FOX) in the Fairbanks, Alaska, television market from Tanana
Valley Television Co. and Chena Broadcasting Co. for $8 million. Both of these acquisitions
were funded with cash on hand.
Comments on Updated Fourth Quarter 2016 Guidance:
Gray initially issued guidance for fourth quarter 2016 on November 8, 2016. While Gray
remains in the process of finalizing its financial results for the fourth quarter of 2016, the Company is presenting the
following updates to estimated results of operations. This updated guidance represents the most current information available to
Gray, and such estimates have not been subject to our normal financial closing and financial statement preparation processes and
are subject to change and finalization. As a result, our actual results could be different and those differences could be
material. Investors should exercise caution in relying on the information contained herein and should not draw any inferences
from this information regarding financial or operating data that is not presented below.
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Updated Guidance
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Three Months Ending December 31,
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Low End
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% Change From
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High End
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% Change From
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Guidance for
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As-Reported
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Guidance for
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As-Reported
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As-Reported
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the Fourth
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Fourth
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the Fourth
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Fourth
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Fourth
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Quarter of
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Quarter of
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Quarter of
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Quarter of
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Quarter of
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Selected operating data:
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2016
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2015
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2016
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2015
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2015
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(dollars in thousands)
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OPERATING REVENUE:
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Revenue (less agency commissions)
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$ 237,000
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40 %
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$ 238,000
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40 %
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$ 169,487
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OPERATING EXPENSES
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(before depreciation, amortization and
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loss on disposals of assets):
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Broadcast
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$ 128,000
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26 %
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$ 129,000
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27 %
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$ 101,969
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Corporate and administrative
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$ 8,500
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(23)%
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$ 9,000
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(18)%
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$ 11,030
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OTHER SELECTED DATA:
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Political advertising revenue
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(less agency commissions)
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$ 48,250
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424 %
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$ 48,750
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429 %
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$ 9,213
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The revised revenue, broadcast operating expense and political advertising revenue ranges each slightly exceed the previous
high-side revenue estimate of $237.0 million, broadcast operating expense estimate of $127.5 million and political advertising revenue estimate of $48.0 million,
respectively. The corporate and administrative operating expense high-side range is unchanged at $9.0 million.
As of December 31, 2016, we expect to report approximately:
- $325.2 million of cash on hand
- $556.4 million principal amount of secured debt; and
- $1,781.4 million principal amount of total debt (excluding unamortized deferred financing
costs and premium).
We currently anticipate that our secured and total leverage ratios, as defined under our Senior Credit Facility, measured on a
trailing eight quarter basis, netting all cash on hand and giving pro forma effect for all acquisitions completed through the
date of this release will be in the following ranges as of December 31, 2016:
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Low
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High
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Secured leverage ratio
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1.6x
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1.8x
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Total leverage ratio
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5.5x
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5.7x
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About Gray:
Gray now owns and/or operates 100 television stations across 54 television markets that collectively broadcast over 200
program streams including 101 channels affiliated with the CBS Network, the NBC Network, the ABC Network and the FOX Network.
Our portfolio includes the number-one and/or number-two ranked television station operations in essentially all of our
markets, which collectively cover approximately 10.1 percent of total United States television
households.
Cautionary Statements for Purposes of the "Safe Harbor" Provisions of the Private Securities Litigation Reform
Act
This press release contains statements that constitute "forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995 and the federal securities laws. These "forward-looking statements" are not statements
of historical facts, and may include, among other things, statements regarding our current expectations and beliefs of the
proposed refinancing of our Senior Credit Facility, operating results for the fourth quarter of 2016 or other periods, the impact
of recently completed transactions, future expenses and other future events. Actual results are subject to a number of risks and
uncertainties and may differ materially from the current expectations and beliefs discussed in this press release. All
information set forth in this release is as of January 20, 2017. We do not intend, and undertake no
duty, to update this information to reflect future events or circumstances. Information about certain potential factors that
could affect our business and financial results and cause actual results to differ materially from those expressed or implied in
any forward-looking statements are included under the captions "Risk Factors" and "Management's Discussion and Analysis of
Financial Condition and Results of Operations," in our Annual Report on Form 10-K for the year ended December 31, 2015 and may be contained in reports subsequently filed with the U.S. Securities and Exchange
Commission (the "SEC") and available at the SEC's website at www.sec.gov.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/gray-announces-proposed-refinancing-of-senior-credit-facility-updates-guidance-for-4th-quarter-2016-300394022.html
SOURCE Gray Television, Inc.