GBTVK List stock 8K filing news.
March 09, 2001
GRANITE BROADCASTING CORP (GBTVK)
form 8-K
ITEM 5. OTHER EVENTS
On March 6, 2001, Granite Broadcasting Corporation (the "Company") entered into and closed an amended and restated credit agreement (the "Credit
Agreement") with a new group of financial institutions led by Goldman Sachs Credit Partners, L.P. The Credit Agreement provides for $205 million in senior secured
term loans, which will mature on December 31, 2003. Approximately $114 million of the loan proceeds were used to repay in full the Company's existing senior
lenders. A copy of the Credit Agreement is attached hereto as Exhibit 4.54 and is hereby incorporated by reference herein.
Upon closing of the Credit Agreement, the Company and NBC Television Network ("NBC") amended and restated the agreement (the "Amended KNTV
Affiliation Agreement") pursuant to which KNTV will become the NBC affiliate for the San Francisco-Oakland-San Jose television market for a ten-year term
beginning January 1, 2002. The Amended KNTV Affiliation Agreement alters the payment terms associated with KNTV's NBC affiliation. The original affiliation
agreement provided that the Company would make a payment to NBC of $61 million (the "Original Initial Payment") on January 1, 2002. Under the Amended
KNTV Affiliation Agreement, the Company paid one-half of the Original Initial Payment at a 12 percent discount (approximately $27.8 million) upon closing the new
Credit Agreement. The remaining half of the Original Initial Payment is now due on January 1, 2005. Concurrently with entering into the Amended KNTV Affiliation
Agreement, the Company and NBC also entered into an amended and restated agreement for the affiliation of KSEE-TV, serving Fresno-Visalia, California;
WEEK-TV, serving Peoria-Bloomington, Illinois and KBJR-TV, serving Duluth, Minnesota-Superior, Wisconsin.
Additionally on March 6, 2001, in connection with the Credit Agreement, the Company granted Goldman, Sachs & Co. a Warrant (the "Warrant") to acquire
753,491 shares of the Company's Common Stock (Nonvoting), par value $0.01 per share (the "Common Stock (Nonvoting)"), at an exercise price of $1.75 per
share. The Warrant expires on March 6, 2006. |
