Gray Media Buys Six Stations for $50M, Funds $40M via 7.25% Notes
GTN•Gray Media will acquire six American Spirit Media TV stations in markets including Toledo, Jackson and Wilmington for $50 million, completing an initial $40 million closing funded by a $70 million private placement of 7.25% senior secured notes due 2033. The remaining purchase will close in Q4 using cash on hand, with debt issuance and preferred redemption expected to be cash flow accretive without raising net leverage.
1. Acquisition Details
Gray Media agreed to purchase six American Spirit Media stations for $50 million. The portfolio includes Fox affiliates in Toledo, Jackson, Wilmington, Columbus, and Lake Charles, plus CBS affiliate KAUZ-TV in Wichita Falls.
2. Financing Structure
The first closing saw Gray pay $40 million using proceeds from a private placement of $70 million of 7.25% senior secured first lien notes due 2033. The balance of the purchase price will be paid in Q4 with cash on hand upon regulatory approvals.
3. Strategic Impact
This transaction represents a tuck‐in strategy to bolster Gray’s local market presence and leverage existing news, sales and sports operations. Management expects the deal, combined with preferred stock redemption, to be cash flow positive without increasing the consolidated net leverage ratio.
