Gray Media Inc. closed a $250 million private placement of 9.625% senior secured second lien notes due 2032, issuing the new debt at 102.0% of par plus accrued interest. The placement, which is part of the same series as the $900 million second lien notes issued in July 2025, is expected to close on December 12, 2025.
The proceeds will be used to redeem $125 million of the company’s 10.5% senior secured first lien notes due 2029 at a redemption price of 103.0% of principal plus accrued and unpaid interest, pay transaction fees, and support general corporate purposes. By replacing higher‑coupon first lien debt with lower‑rate second lien debt, Gray Media reduces its interest expense and extends the maturity of its debt profile, a key element of its deleveraging strategy.
Gray Media’s recent financial results underscore the strategic importance of the refinancing. In Q3 2025 the company reported revenue of $749 million, matching the high end of its guidance, while net loss attributable to common shareholders widened to $23 million from $69 million in Q2 2025. The revenue gain was driven by a modest uptick in local advertising and digital content sales, offset by a decline in political advertising revenue, which fell sharply in the off‑election year. The company’s debt‑to‑equity ratio stood at 2.65 and total debt was $5.7 billion, prompting management to prioritize debt reduction.
CEO Hilton Howell Jr. said the transaction “reinforces our commitment to reducing leverage and extending our debt maturities, positioning the company for sustainable growth.” CFO Jeff Gignac added that the company has already reduced its outstanding debt principal by $246 million in Q3 2025 and expects to lower total net debt by roughly $500 million for the year, highlighting the ongoing focus on capital discipline.
Analysts noted that the refinancing aligns with Gray Media’s broader debt‑management strategy, which has included a $900 million second lien offering in July 2025 and a $1.25 billion first lien offering in June 2024. The market reaction to the transaction was tempered by concerns over the company’s high leverage and the cyclical nature of its advertising revenue, but the move was viewed as a prudent step to improve financial flexibility amid a challenging media landscape.
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