Note 4 - Long-term Debt

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Debt Disclosure [Text Block]

4. Long-term Debt

As of September 30, 2022 and December 31, 2021, long-term debt consisted of obligations under our 2019 Senior Credit Facility (as defined below), our 5.875% senior notes due 2026 (the “2026 Notes”), our 7.0% senior notes due 2027 (the “2027 Notes”), our 4.75% senior notes due 2030 (the “2030 Notes”) and our 5.375% notes due 2031 (the “2031 Notes”), as follows (in millions):

	September 30,			December 31,
	2022			2021
Long-term debt:
2019 Senior Credit Facility:
2017 Term Loan (matures February 7, 2024)	$	445		$	595
2019 Term Loan (matures January 2, 2026)		1,190			1,190
2021 Term Loan (matures December 1, 2028)		1,489			1,500
2026 Notes (matures July 15, 2026)		700			700
2027 Notes (matures May 15, 2027)		750			750
2030 Notes (matures October 15, 2030)		800			800
2031 Notes (matures November 15, 2031)		1,300			1,300
Total outstanding principal, including current portion		6,674			6,835
Unamortized deferred loan costs - 2017 Term Loan		(5	)		(7	)
Unamortized deferred loan costs - 2019 Term Loan		(22	)		(27	)
Unamortized deferred loan costs - 2021 Term Loan		(5	)		(5	)
Unamortized deferred loan costs - 2026 Notes		(4	)		(5	)
Unamortized deferred loan costs - 2027 Notes		(7	)		(8	)
Unamortized deferred loan costs - 2030 Notes		(11	)		(13	)
Unamortized deferred loan costs - 2031 Notes		(17	)		(18	)
Unamortized premium - 2026 Notes		2			3
Less current portion		(15	)		(15	)
Net carrying value	$	6,590		$	6,740
Borrowing availability under Revolving Credit Facility	$	496		$	497

As of September 30, 2022, the interest rates on the balances outstanding under the 2017 Term Loan, the 2019 Term Loan and the 2021 Term Loan were 5.2%, 5.1% and 5.6% respectively. We expect that interest rates applicable to the 2019 Senior Credit Facility will be modified upon the implementation of a LIBOR replacement rate that will apply to our current and future borrowings under the 2019 Senior Credit Facility. The components of the Revolving Credit Facility mature at different times during the period from January 2, 2026 through December 1, 2026.

As of September 30, 2022, the aggregate minimum principal maturities of our long term debt for the remainder of 2022 and the succeeding 5 years were as follows (in millions):

	Minimum Principal Maturities
Year	2021 Senior Credit Facility		2026 Notes		2027 Notes		2030 Notes		2031 Notes		Total
Remainder of 2022	$	4	$	-	$	-	$	-	$	-	$	4
2023		15		-		-		-		-		15
2024		460		-		-		-		-		460
2025		15		-		-		-		-		15
2026		1,205		700		-		-		-		1,905
2027		15		-		750		-		-		765
Thereafter		1,410		-		-		800		1,300		3,510
Total	$	3,124	$	700	$	750	$	800	$	1,300	$	6,674

As of September 30, 2022, there were no significant restrictions on the ability of Gray Television, Inc.'s subsidiaries to distribute cash to Gray or to the guarantor subsidiaries. The 2019 Senior Credit Facility contains affirmative and restrictive covenants with which we must comply. The 2026 Notes, the 2027 Notes, the 2030 Notes and the 2031 Notes also include covenants with which we must comply. As of September 30, 2022 and December 31, 2021, we were in compliance with all required covenants under all our debt obligations.

For all our interest bearing obligations, we made interest payments of approximately $212 million and $121 million during the nine-months ended September 30, 2022 and 2021, respectively. During the nine months ended September 30, 2022, we capitalized $4 million of interest payments related to our Assembly Atlanta project. We did not capitalize any interest payments during the nine-months ended September 30, 2021.

In the nine-months ended September 30, 2022, we paid the required principal reductions of $11 million of our 2021 Term Loan and voluntarily pre-paid $150 million of the outstanding principal balance of our 2017 Term Loan.

Subsequent Event. On November 1, 2022, we made an additional voluntary pre-payment of $100 million of the outstanding principal balance of our 2017 Term Loan.