Wachovia Securities is shopping a $225 million term loan for Gray Television that replaces the company's existing "B" loan at a tighter LIBOR plus 21/4% spread. The new "C" tranche will take out the "B" piece, which is priced 50 basis points higher, said a banker familiar with the credit. The existing credit was completed last October and includes a seven-year, $75 million revolver and an eight-year, $375 million "B" piece. The banker said the combination of better market conditions and improved company performance prompted Gray to seek the refinancing. He would not specify commitment levels to the loan as of late last week. James Ryan, v.p. of finance and cfo of Gray, could not be reached by press time.
Total revenues for the Atlanta-based television station and newspaper company for the three months ended March 31, increased 73% to $65 million, as compared to the same period for 2002. Bank of America and Deutsche Bank are agents on Gray's existing facility. A Wachovia official declined comment, while bankers at B of A and Deutsche Bank did not return calls.