ATLANTA, Sept. 24, 2012 /PRNewswire/ -- Gray Television, Inc. ("Gray" or the "Company") (NYSE: GTN) announced today that it has commenced an offering of $250.0 million aggregate principal amount of senior notes due 2020 (the "Notes") in a private offering that is exempt from the registration requirements of the Securities Act of 1933 (the "Act"). The Notes will be the Company's senior unsecured obligations and will be guaranteed by all of the Company's existing, and certain future, subsidiaries.
The Company intends to use the net proceeds from the offering of the Notes to (i) repurchase for cash up to $225.0 million of the Company's outstanding 10½% senior secured second lien notes due 2015 (the "2015 notes") pursuant to a cash tender offer by the Company and (ii) pay related fees and expenses. If the Company does not use all of the proceeds from the Offering of Notes to repurchase 2015 notes pursuant to the tender offer for any reason, the Company intends to use the remaining proceeds from the issuance of the Notes to (i) redeem the outstanding shares of the Company's Series D perpetual preferred stock and (ii) repay a portion of the term loans outstanding under the Company's senior credit facility. The completion of the offering of Notes is conditioned upon customary closing conditions.
The Notes and the related guarantees have not been, and will not be, registered under the Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption therefrom. The Notes will be offered only to qualified institutional buyers under Rule 144A and to persons outside the United States under Regulation S.
This press release does not constitute an offer to sell or a solicitation of an offer to buy the Notes, and shall not constitute an offer, solicitation or sale of any Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful. This press release is being issued pursuant to and in accordance with Rule 135c under the Act.