A few weeks after buying back $4.8 million of its Series D perpetual preferred stock Gray Television has closed another deal to buy back a second block for $4.8 million.
“Gray Television, Inc. announced that on August 23, 2011 it completed the repurchase of an additional 32.56 shares of its Series D perpetual preferred stock in a private transaction. These shares were repurchased at their liquidation value of $100,000 per share, plus accrued dividends of $1.5 million. The total cost of this transaction of $4.8 million was funded from cash balances on hand. After giving effect to this transaction, 327.95 shares of our Series D perpetual preferred stock remain outstanding,” the company announced on Thursday (8/25).
Some quick math puts the value of the Series D perpetual preferred shares still outstanding at $32.8 million. Since Gray is paying 15% interest on those shares, you can understand why the company would like to buy them back.
