Note 4 - Long-term Debt

9 Months Ended

Sep. 30, 2020

Notes to Financial Statements

Debt Disclosure [Text Block]

4.      Long-term Debt

As of September 30, 2020 and December 31, 2019, long-term debt consisted of obligations under our senior credit facility (the “2019 Senior Credit Facility”), our 5.125% Senior Notes due 2024 (the “2024 Notes”), our 5.875% Senior Notes due 2026 (the “2026 Notes”) and our 7.0% Senior Notes due 2027 (the “2027 Notes”) as follows (in millions):

	September 30,			December 31,
	2020			2019
Long-term debt including current portion:
2017 Term Loan	$	595		$	595
2019 Term Loan		1,190			1,190
2024 Notes		525			525
2026 Notes		700			700
2027 Notes		750			750
Total outstanding principal		3,760			3,760
Unamortized deferred loan costs - 2019 Term Loan		(37	)		(44	)
Unamortized deferred loan costs - 2024 Notes		(4	)		(5	)
Unamortized deferred loan costs - 2026 Notes		(6	)		(7	)
Unamortized deferred loan costs - 2027 Notes		(10	)		(11	)
Unamortized premium - 2026 Notes		3			4
Long-term debt, less deferred financing costs		3,706			3,697
Less current portion		-			-
Net carrying value	$	3,706		$	3,697
Borrowing availability under Revolving Credit Facility	$	200		$	200

Borrowings under the 2019 Term Loan and the 2017 Term Loan bear interest, at our option, at either the London Interbank Offered Rate (“LIBOR”) or the Base Rate, in each case, plus an applicable margin. As of September 30, 2020, the interest rate on the balance outstanding under the 2019 Term Loan and the 2017 Term Loan were 2.7% and 2.4%, respectively. The 2019 Term Loan and the 2017 Term Loan mature on January 2, 2026 and February 7, 2024, respectively.

As of September 30, 2020, the aggregate minimum principal maturities of our long term debt for the remainder of 2020 and the succeeding 5 years were as follows (in millions):

	Minimum Principal Maturities
Year	2019 Senior Credit Facility		2024 Notes		2026 Notes		2027 Notes		Total
Remainder of 2020	$	-	$	-	$	-	$	-	$	-
2021		-		-		-		-		-
2022		-		-		-		-		-
2023		-		-		-		-		-
2024		595		525		-		-		1,120
2025		-		-		-		-		-
Thereafter		1,190		-		700		750		2,640
Total	$	1,785	$	525	$	700	$	750	$	3,760

As of September 30, 2020, 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 2024 Notes, the 2026 Notes and the 2027 Notes include covenants with which we must comply. As of September 30, 2020 and December 31, 2019, 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 $127 million and $134 million during the nine-months ended September 30, 2020 and 2019, respectively. We did not capitalize any interest payments during the nine-months ended September 30, 2020 and 2019.

On October 19, 2020, we issued $800 million in aggregate principal amount of 4.750% Senior Notes due 2030 (the "2030 Notes"), and used the net proceeds therefrom, after deducting transaction fees and estimated expenses, to redeem all of our outstanding 2024 Notes and to pay all fees and expenses in connection with the offering, including the redemption premium applicable to the 2024 Notes. We intend to use the remaining net proceeds for general corporate purposes, which could include the repayment of outstanding debt from time to time. For additional information on this transaction, see Note 14 "Subsequent Events."