Gray Television amends credit facility to allow it to call preferreds

By Angela McDaniels

Tacoma, Wash., Aug. 1 - Gray Television, Inc. said it amended its senior credit facility to allow it to use a portion of the proceeds from a potential issuance of capital stock or debt securities to redeem its perpetual preferred stock.

The amendment was effective June 30, according to the company's earnings release for the second quarter.

If the proceeds are not from an issuance of common stock, the company must repay an amount of outstanding term loans that is at least equal to the amount used to redeem the preferreds.

If the company does not use the proceeds to redeem the preferreds within 40 days of the new issue, it must use the proceeds to pay down more of the term loans.

As of June 30, the company had $37.41 million of preferreds outstanding plus $17.5 million of accrued dividends.

Gray is a television broadcast company based in Atlanta.

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