Edition:
India

Gray And Raycom To Combine In A $3.6 Bln Transaction


Monday, 25 Jun 2018 

June 25 (Reuters) - Gray Television Inc ::GRAY AND RAYCOM TO COMBINE IN A $3.6 BILLION TRANSACTION.GRAY TELEVISION INC - RAYCOM TRANSACTION WILL BE SUBSTANTIALLY ACCRETIVE ON A FREE CASH FLOW PER SHARE BASIS.GRAY TELEVISION- DEAL CONSIDERATION WILL CONSIST OF $2.85 BILLION IN CASH,$650 MILLION IN NEW SERIES OF PREFERRED STOCK, & 11.5 MILLION SHARES OF GRAY STOCK.GRAY TELEVISION INC - TRANSACTION HAS BEEN APPROVED UNANIMOUSLY BY BOARDS OF DIRECTORS OF BOTH GRAY AND RAYCOM.GRAY TELEVISION INC - DEAL VALUE CONSISTS OF $3.547 BILLION IN ENTERPRISE VALUE AND $100 MILLION OF RAYCOM CASH.GRAY TELEVISION INC - TRANSACTION HAS BEEN APPROVED UNANIMOUSLY BY BOARDS OF DIRECTORS OF BOTH GRAY AND RAYCOM.GRAY TELEVISION INC - WELLS FARGO HAS UNDERWRITTEN DEBT FINANCING PORTION OF TRANSACTION IN AMOUNT OF $2.525 BILLION.GRAY TELEVISION INC - GRAY SHAREHOLDERS WILL RETAIN 89 PERCENT OF ECONOMIC OWNERSHIP OF COMPANY FOLLOWING DEAL CLOSING.GRAY TELEVISION INC - RAYCOM HAS INITIATED PROCESSES TO SELL OR SPIN OFF COMMUNITY NEWSPAPER HOLDINGS, INC AS WELL AS PURECARS.GRAY TELEVISION - ELECTED TO DIVEST TELEVISION STATIONS IN 9 OVERLAP MARKETS RATHER THAN SEEK REGULATORY APPROVALS OF CERTAIN COMBINATIONS IN CERTAIN MARKETS.GRAY TELEVISION INC - UPON DEAL CLOSE, RAYCOM PRESIDENT AND CEO, PAT LAPLATNEY, WILL BECOME GRAY'S PRESIDENT AND CO-CHIEF EXECUTIVE OFFICER.GRAY TELEVISION INC - UPON DEAL CLOSE, HILTON HOWELL WILL BECOME EXECUTIVE CHAIRMAN AND CO-CHIEF EXECUTIVE OFFICER OF GRAY.