April 1, 2010 (FinancialWire) — Gray Television, Inc. (NYSE: GTN) said that the company and its lenders have entered into an amendment to Gray's senior credit facility. The amendment resets the applicable leverage ratio test, modifies certain other terms of the facility, and is intended to provide the company with additional operating flexibility thereunder in the future.

Gray said that, among other things, the senior credit facility amendment increases the company's flexibility under the maximum total net leverage ratio covenant with which it must comply, immediately setting the leverage ratio at 9.00 for the quarter ending March 31, 2010, and also reduces the lenders' revolving commitments thereunder from $50.0 million to $40.0 million.

According to Gray, the amendment also provides the company with additional flexibility to issue certain debt securities, with the proceeds thereof to be used to repay outstanding amounts under the senior credit facility.

Under the amendment, from and after the time the company completes a new debt issuance and repays at least $200.0 million of existing obligations under the senior credit facility, the company would obtain further operating and financial flexibility, including the elimination of the requirement to comply with the total net leverage ratio covenant, which will be replaced with a first lien leverage test and a minimum fixed charge coverage ratio, and the elimination or reduction of certain additional fees paid by the company under the senior credit facility as amended.

Georgia-based Gray Television is a television broadcast company that operate 36 television stations serving 30 markets.

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