Gray Television Executes Strategic Debt Refinancing to Extend Maturities

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Gray Television has announced a targeted refinancing operation, effectively clearing near-term debt obligations and pushing key maturities several years into the future. The broadcast group revealed plans to fully redeem its 5.875% Senior Notes due in 2026, funded by a recent private placement of higher-interest debt scheduled for 2032. This maneuver prioritizes long-term balance sheet management over immediate interest expense reduction.

• Debt Redemption: The company issued a Notice of Redemption for all of its 5.875% Senior Notes due 2026. Settlement is set for January 20, 2026, at par value plus accrued interest.
• New Issuance: On December 12, Gray Television completed a private placement of $250 million in 9.625% Senior Secured Second Lien Notes, which mature in 2032.
• Equity Snapshot: Shares recently traded around $5.08, marking an increase of approximately 1.6%. The quarterly dividend stands at $0.08 per share (annualized $0.32), yielding roughly 6.3%. The company’s market capitalization is approximately $550 million.
• Corporate Developments: Alan Gould assumed the role of Vice President and Head of Investor Relations on December 18. The acquisition of WBBJ-TV in Jackson, Tennessee, is anticipated to close in the first quarter of 2026 and is projected by management to be immediately accretive to free cash flow.

Strategic Rationale and Market Context

This refinancing package demonstrates a clear strategic choice by Gray’s management. By addressing the 2026 maturity now with proceeds from the 2032 notes, the company significantly extends its debt maturity profile. While the new bonds carry a substantially higher coupon rate of 9.625%, compared to the 5.875% on the retiring notes, the transaction mitigates refinancing risk in the medium term. The move provides the broadcaster with greater operational runway and liquidity certainty.

The equity market’s valuation of the company, reflected in a share price near $5.08 and a price-to-earnings ratio of about 12.2, continues to signal a cautious outlook on the traditional broadcasting sector.

Strengthening Operations and Communications

Alongside its financial restructuring, Gray Television is bolstering its investor relations and local market presence. The appointment of Alan Gould, formerly Managing Director and Senior Media & Internet Analyst at Loop Capital, to lead Investor Relations aims to enhance communication with the capital markets.

Furthermore, the pending purchase of WBBJ-TV aligns with the group’s strategy to expand its regional footprint. Management expects the transaction, slated for completion in Q1 2026, to contribute positively to free cash flow upon integration.

Looking Ahead

Two key dates now anchor Gray Television’s near-term calendar: the redemption of the 2026 notes on January 20, 2026, and the expected finalization of the WBBJ-TV acquisition within the same quarter. These steps collectively represent a concerted effort to reshape the company’s financial foundation while pursuing growth in its core broadcasting operations.