Gray Media Raises $75M Term Loan, Redeems $150M 2029 Notes

ATLANTA — Gray Media, Inc. (NYSE: GTN) said on Oct. 09, 2026 that it amended its credit agreement to add $75 million to its $600 million Term Loan G, and issued a conditional notice to redeem $150 million of its 10.500% senior secured notes due 2029. GTN traded at $4.83 as of 12:46 UTC today, up 3.87% and inside a $4.74-$4.92 session range. The redemption is priced at 105.250% of principal plus accrued interest, contingent on the new loan funding.

Context — Why Is Gray Media Refinancing Its 2029 Notes Now?

The transaction pairs a floating-rate bank borrowing with the retirement of a fixed-rate bond carrying a 10.500% coupon. Gray frames the new draw as fungible with the existing Term Loan G, meaning the added $75 million carries the same terms as the $600 million tranche maturing July 15, 2030. The company did not disclose the interest rate, spread or pricing mechanics on the Incremental TLG.

What the report does establish is the trigger sequence. Gray entered the incremental amendment, then issued the conditional redemption notice the same day. Funding of the loan is expected on or prior to Oct. 19, 2026, and the redemption is conditioned on that funding. If the conditions are not met, the redemption does not occur on the stated terms.

The comparable inside the report is the capital structure itself. Gray expects to hold $200 million of 2029 Notes and $675 million of Term Loan G once both steps close, against $350 million of 2029 Notes and $600 million of Term Loan G before. That is a $150 million reduction in the bond and a $75 million increase in the loan, with cash on hand covering the difference plus fees.

Gray is the largest owner of top-rated local television stations in the US, serving 117 full-power markets reaching roughly 37% of television households, according to the company. Broadcast cash flows are the collateral behind this stack, and the cost of that debt is what the refinancing targets. The report gives no leverage ratio, no free cash flow figure and no maturity ladder beyond the two instruments named.

The macro backdrop is not supplied in the report. What the market data shows is a modestly higher equity price on the day of the announcement, with GTN at $4.83 and a session range of $4.74 to $4.92. No bond price or yield for the 2029 Notes appears in either source.

Data — What Do the Numbers Show?

The headline figures are $75 million of new term loan capacity, $150 million of 2029 Notes to be redeemed, a 105.250% redemption price, and a 10.500% coupon on the notes being retired. The redemption date is Oct. 19, 2026, the same deadline by which Gray expects the loan conditions to be satisfied.

Metric	Before	After (expected)
2029 Notes outstanding	$350 million	$200 million
Term Loan G outstanding	$600 million	$675 million
Redemption price	—	105.250% of principal

The call premium is the cost of retiring the notes early. At 105.250%, Gray pays $5.25 above par for every $100 of principal, before accrued and unpaid interest to the redemption date. On $150 million of principal, that premium is a cash outlay the company must fund alongside the principal itself, and the report confirms the proceeds and cash on hand cover both the redemption and the associated fees and expenses.

GTN's move on the day was positive: $4.83, up 3.87%, with the range spanning $4.74 to $4.92. That is a $0.18 spread between the session low and high, and the close-to-date print sits $0.09 below the high. The report does not link the share move to the financing, and no causal claim is made here.

For scale, the $75 million incremental loan equals 12.5% of the original $600 million Term Loan G. The $150 million redemption equals 42.9% of the $350 million of 2029 Notes outstanding before the transaction. The report provides no peer comparison and no sector benchmark.

Analysis — What It Means for Credit and Equity Holders

The economics are straightforward. Gray swaps $150 million of debt costing 10.500% for $75 million of term loan borrowing plus $75 million of cash. The coupon saved on the retired notes is the visible gain; the report does not state the rate on the Incremental TLG, so the net interest benefit cannot be computed from the disclosed figures alone.

Second-order effects land on the secured creditor stack. The 2029 Notes are senior secured, and the Term Loan G is also secured. Shrinking the bond while growing the loan changes the mix between bank lenders and bondholders, and the fungibility language means the new money ranks alongside the existing tranche rather than behind it. The report does not describe intercreditor mechanics or collateral coverage.

For equity holders, the relevant question is whether lower cash interest frees room for station-level investment, digital expansion or buybacks. Gray's portfolio includes the largest Telemundo affiliate group across 46 markets and Gray Digital Media. The report gives no capital allocation guidance beyond this refinancing.

The limitation is timing risk. The redemption is conditional on funding the Incremental TLG, and the report itself lists funding of the loan and completion of the redemption among the risks that could cause actual results to differ. A delay past Oct. 19, 2026 would leave the $150 million of 2029 Notes outstanding and the call premium unpaid.

Positioning is visible in the equity tape. GTN at $4.83, up 3.87%, with a $4.74-$4.92 range, shows buyers active on the session. The report does not disclose bondholder participation, tender results or secondary trading levels in the 2029 Notes.

Outlook — What to Watch Next

The first catalyst is the funding condition, expected satisfied on or prior to Oct. 19, 2026. Until then, the redemption notice remains conditional and the transaction is not complete. Watch for confirmation that the Incremental TLG has been drawn.

The second is the redemption itself, scheduled for Oct. 19, 2026, at 105.250% of principal plus accrued and unpaid interest. Holders of the 2029 Notes not redeemed will hold the remaining $200 million, a smaller and less liquid float than the $350 million outstanding before.

On the equity side, the levels the market data provides are the session range: $4.74 as the low, $4.92 as the high, with $4.83 the reference print at 12:46 UTC. No moving averages, yield thresholds or index comparisons appear in either the report or the market data, so none are offered here. The company did not disclose the pricing on the new loan, the identity of lenders, or any covenant changes tied to the amendment.

Frequently Asked Questions

What does the Gray Media 2029 Notes redemption mean for bondholders?

Holders of the redeemed portion receive 105.250% of principal plus accrued and unpaid interest to Oct. 19, 2026. That is $1,052.50 per $1,000 of face value before interest. Holders of the remaining $200 million keep a smaller issue with the same 10.500% coupon and 2029 maturity. The report does not say whether any notes will be purchased in the open market or how the remaining float will trade.

Why is Gray using a term loan instead of cash alone to retire the notes?

Gray is combining $75 million of new term loan borrowing with cash on hand to fund the $150 million redemption plus fees. The report does not state the interest rate on the Incremental TLG, so the cost comparison against the 10.500% coupon is not disclosed. The new loan is fungible with the existing Term Loan G maturing July 15, 2030.