Gray Television, Inc. and Triple Crown Media, Inc. Announce Completion of the Spin-Off of Gray's Newspaper Publishing and Grayli
03 Janvier 2006 - 1:00PM
PR Newswire (US)
Triple Crown Media, Inc. and Bull Run Corporation Announce the
Merger of Bull Run into a Subsidiary of Triple Crown Media, Inc.
ATLANTA, Jan. 3 /PRNewswire-FirstCall/ -- Gray Television, Inc.
(NYSE: GTN; GTN.A) and Triple Crown Media, Inc. (NASDAQ:TCMI) today
announced the completion of the previously announced spin-off by
Gray of Triple Crown Media, Inc., effective December 30, 2005.
Prior to the spin-off, Gray contributed its Newspaper Publishing
and Graylink Wireless businesses to Triple Crown Media. In
connection with the spin-off, Triple Crown Media made a $40 million
cash distribution to Gray, which Gray used to reduce its
outstanding indebtedness. Triple Crown Media's common stock is
traded on the Nasdaq National Market under the symbol "TCMI." In
connection with the spin-off, Gray distributed one share of Triple
Crown Media common stock for every ten shares of Gray common stock,
and one share of Triple Crown Media common stock for every ten
shares of Gray Class A common stock held by Gray shareholders on
December 14, 2005. Triple Crown Media and Bull Run Corporation
(OTC:BULL.PK) also announced today that the previously announced
merger of Bull Run into a subsidiary of Triple Crown Media, which
was effective on December 30, 2005, following the approval of Bull
Run's shareholders at a special meeting of shareholders held
earlier that day. As a result of the spin-off and merger, the
current shareholders of Gray own approximately 95% of Triple Crown
Media's outstanding common stock and certain former holders of Bull
Run preferred stock and former holders of Bull Run common stock
hold the remaining 5%. Robert S. Prather, Jr., President and Chief
Operating Officer of Gray stated, "With the completion of the
spin-off, Gray will now be able to focus its financial and
operating resources on its television broadcasting business, and we
believe that in Triple Crown Media we have created value for the
Gray and Bull Run shareholders." Thomas J. Stultz, Triple Crown
Media's President and CEO, stated, "We are very pleased to complete
the process of the spin-off and merger so that we can now begin our
integration into a new combined organization. I am excited about
the prospects of combining the revenue from Triple Crown Media's
newspaper publishing business and wireless services businesses with
the growth potential of Host's Collegiate Marketing and Production
Services business and Association Management Services business. We
believe this will be a great combination of businesses that
complement one another and will serve to accelerate the growth in
each of these businesses beyond what they could achieve
independently." Stultz has been President and CEO of Host
Communications since 2004 and was formerly President of Gray's
Newspaper Publishing business. Triple Crown Media also announced
today that it has entered into new credit facilities totaling $140
million. The credit facilities consist of a 4-year $20 million
revolving credit facility, a 4.5-year $90 million first lien term
loan and a 5-year $30 million second lien term loan. The interest
rate is based on the lender's base rate (generally reflecting the
lender's prime rate) or a London Interbank Offered Rate ("LIBOR")
plus in each case a specified margin, and for revolving and first
lien term loan advances, the margin is based upon Triple Crown
Media's debt leverage ratio as defined in the agreement. The
initial margin for revolving and first lien term loan advances is
2.25% for base rate advances and 3.25% for LIBOR advances. The
specified margin for second lien term loan advances is 8.0% for
base rate advances and 9.0% for LIBOR advances. The credit facility
is secured by substantially all of the assets of Triple Crown Media
and its subsidiaries. The agreement contains certain restrictive
provisions which include but are not limited to, requiring Triple
Crown Media to maintain certain financial ratios and limits upon
Triple Crown Media's ability to incur additional indebtedness, make
certain acquisitions or investments, sell assets or make other
restricted payments, including dividends, as defined in the loan
agreement. Proceeds of the new financing were used to make a $40
million cash distribution to Gray in connection with the spin-off,
refinance all of the surviving corporation's long-term debt, redeem
Bull Run preferred stock held by non-affiliated parties in
connection with the merger and pay transaction costs. Cautionary
Statements for Purposes of the "Safe Harbor" Provisions of the
Private Securities Litigation Reform Act Except for the historical
information contained herein, information set forth in this news
release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995, including,
without limitation, statements concerning expected benefits of the
spin-off and the combination of Bull Run and Triple Crown Media. In
addition, words such as "expects," "anticipates," "intends,"
"plans," "believes," "estimates," and variations of such words and
similar expressions that indicate future events and trends are
intended to identify such forward-looking statements. These
forward-looking statements are subject to risks and uncertainties,
which could cause the company's actual results or performance to
differ materially from those expressed or implied in such
statements. About the Companies Gray Television, Inc. is a
television broadcast company headquartered in Atlanta, GA.
Including the previously announced pending acquisition of WNDU- TV,
South Bend, IN, Gray operates 36 television stations serving 30
markets. Each of the stations are affiliated with either CBS (17
stations), NBC (10 stations), ABC (8 stations), or Fox (1 station).
In addition, Gray currently operates seven digital multi-cast
television channels in seven of its existing markets, which are
affiliated with either UPN or Fox. Triple Crown Media owns and
operates five daily newspapers with total daily circulation of
approximately 120,000 and Sunday circulation of approximately
160,000, and is a leading provider of primarily paging and other
wireless services in non-major metropolitan areas in Alabama,
Florida and Georgia, where it also operates 14 retail locations.
Triple Crown Media, through its subsidiary, Host Communications,
Inc., is engaged in the Collegiate Marketing and Production
Services business and Association Management Services business. The
Collegiate Management and Production Services business provides
sports marketing and production services to a number of collegiate
conferences and universities and, through a contract with CBS
Sports, on behalf of the National Collegiate Athletic Association.
The Association Management Services business provides various
associations with services such as member communication,
recruitment and retention, conference planning, Internet web site
management, marketing and administration. DATASOURCE: Gray
Television, Inc. CONTACT: Bob Prather, President, +1-404-266-8333,
or Jim Ryan, Chief Financial Officer, +1-404-504-9828, both of Gray
Television, Inc.; or Thomas J. Stultz, President, +1-859-226-4356,
or Frederick J. Erickson, Chief Financial Officer, +1-859-226-4376,
both of Triple Crown Media, Inc. Web site: http://www.gray.tv/
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