Gray Television Inc . (NYSE:GTN), a Georgia-based broadcaster, has amended a significant financial agreement, as disclosed in a recent SEC filing. On Monday, the company modified terms related to its $300 million accounts receivable securitization facility.
The original facility, established on February 23, 2023, with Wells Fargo (NYSE:WFC) Bank as the administrative agent, has now undergone an amendment to certain ratios pertaining to the receivables. This amendment, executed on June 18, 2024, involves Gray Television, its wholly-owned subsidiary Gray AR, LLC (the "SPV"), and various purchasers.
The SPV, created for the specific purpose of this transaction, holds the receivables separate from Gray Television. Its assets are prioritized for its own creditors, which means they are not immediately available to satisfy claims against Gray Television or its other subsidiaries. However, once obligations to the SPV's creditors are met, any surplus from the receivables may be transferred to Gray Television.
The rest of the terms of the Receivables Purchase Agreement and related documents remain unchanged and in full effect. The amendment aims to tweak financial ratios to possibly reflect changes in the company's operations or market conditions, ensuring compliance with the facility's terms.
Gray Television's action to amend this facility reflects routine financial management and is a common practice in corporate finance to maintain optimal financial flexibility. The information is based on a press release statement.
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