Note 4 - Long-term Debt

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Debt Disclosure [Text Block]

4. Long-term Debt

As of December 31, 2022 and 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% senior notes due 2031 (the “2031 Notes”) as follows (in millions):

	December 31,
	2022			2021
Long-term debt:
2019 Senior Credit Facility:
2017 Term Loan (matures February 7, 2024)	$	295		$	595
2019 Term Loan (matures January 2, 2026)		1,190			1,190
2021 Term Loan (matures December 1, 2028)		1,485			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		6,520			6,835
Unamortized deferred loan costs - 2017 Term Loan		(4	)		(7	)
Unamortized deferred loan costs - 2019 Term Loan		(21	)		(27	)
Unamortized deferred loan costs - 2021 Term Loan		(4	)		(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		(16	)		(18	)
Unamortized premium - 2026 Notes		2			3
Less current portion		(15	)		(15	)
Long-term debt, less deferred financing costs	$	6,440		$	6,740
Borrowing availability under Revolving Credit Facility	$	496		$	497

Borrowings under the the 2021 Term Loan, 2019 Term Loan 2017 Term Loan and the Revolving Credit Facility 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 December 31, 2022, the interest rate on the balance outstanding under the 2021 Term Loan, 2019 Term Loan and the 2017 Term Loan were 7.1%, 6.6% and 6.6%, respectively. A portion of the Revolving Credit Facility matures on January 2, 2026, with the remainder maturing on December 1, 2026.

As of December 31, 2022, the aggregate minimum principal maturities of our long-term debt were as follows (in millions):

	Minimum Principal Maturities
	2019 Senior		2026		2027		2030		2031
Year	Credit Facility		Notes		Notes		Notes		Notes		Total
2023	$	15	$	-	$	-	$	-	$	-	$	15
2024		310		-		-		-		-		310
2025		15		-		-		-		-		15
2026		1,205		700		-		-		-		1,905
2027		15		-		750		-		-		765
Thereafter		1,410		-		-		800		1,300		3,510
Total	$	2,970	$	700	$	750	$	800	$	1,300	$	6,520

Collateral, Covenants and Restrictions. Our obligations under the 2019 Senior Credit Facility are secured by substantially all of our consolidated assets, excluding real estate. In addition, substantially all of our subsidiaries are joint and several guarantors of, and our ownership interests in those subsidiaries are pledged to collateralize, our obligations under the 2019 Senior Credit Facility. Gray Television, Inc. is a holding company, and has no material independent assets or operations. For all applicable periods, the 2026 Notes, 2027 Notes, 2030 Notes and 2031 Notes have been fully and unconditionally guaranteed, on a joint and several, senior unsecured basis, by substantially all of Gray Television, Inc.’s subsidiaries. Any subsidiaries of Gray Television, Inc. that do not guarantee the 2026 Notes, 2027 Notes, 2030 Notes and 2031 Notes are not material or are designated as unrestricted under the Senior Credit Facility. As of December 31, 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, including: (a) limitations on additional indebtedness, (b) limitations on liens, (c) limitations on the sale of assets, (d) limitations on guarantees, (e) limitations on investments and acquisitions, (f) limitations on the payment of dividends and share repurchases, (g) limitations on mergers and (h) maintenance of the First Lien Leverage Ratio while any amount is outstanding under the revolving credit facility, as well as other customary covenants for credit facilities of this type. The 2026 Notes, 2027 Notes, 2030 Notes and 2031 Notes include covenants with which we must comply which are typical for borrowing transactions of their nature. As of December 31, 2022 and 2021, we were in compliance with all required covenants under all our debt obligations.

Interest Payments. For all of our interest-bearing obligations, we made interest payments of approximately $339 million, $178 million and $179 million during 2022, 2021 and 2020, respectively. During the year ended December 31, 2022 we capitalized $9 million of interest payments related to our Assembly Atlanta project. We did not capitalize any interest payments during the years ended December 31, 2021 and 2020.