Gray Television sells $365 million in new bonds


A private placement of $365 million in senior secured second lien notes due 2015 was priced on Wednesday by Gray Television. The offering carries a coupon of 10.5% and was priced at 98.085% of par.

The sale of the notes is expected to be completed on April 29, 2010, subject to customary closing conditions, the company said.

Gray intends to use the net proceeds from the offering of notes to (i) repay a portion of its term loans outstanding, (ii) repurchase a portion of the outstanding shares of its Series D perpetual preferred stock and (iii) pay related fees and expenses, including advisory fees.