Gray Television would like some more, please.
The owner and operator of 100 television stations across 54 markets on Monday (3/27) announced that it is proposing—subject to market and other conditions—to add on $85 million to its existing term loan under its current senior facility.
Why does Gray Television need the additional millions of dollars?
“The proposed addition to our existing term loan would be used to fund our previously announced acquisition of two television stations from Diversified Communications
and other general corporate purposes,” Gray said, adding that it expects the terms of the term loan addition to be essentially the same as its existing term loan.
Gray on Feb. 16 announced that it had agreed to purchase WABI-TV in Bangor, Maine, and WCJB-TV in Gainesville, Fla., from Diversified for $85 million.
Gray still expects the transaction to close in Q2 2017.
The additional loan may be due to the timing of its reverse auction proceeds. Gray is receiving $90.8 million in proceeds from spectrum auction, but believes it will not receive the money until Q2 or Q3 2017–after the closing of the Diversified deal.
Thus, when the federal government paid Gray for giving up the spectrum, the money would be earmarked for its lenders.