Moody's rates ALM Media loans B3, Caa2

Moody's Investors Service said it has assigned a B3 rating to ALM Media, Inc.'s proposed $24.7 million incremental senior secured term loan and a Caa2 rating to its proposed $19.3 million incremental second-lien term loan, which will be used to fund a dividend payment to its sponsor and the redemption of preferred stock.

In addition, Moody's said it has downgraded ALM Media's existing $78 million second-lien senior secured term loan facility to Caa2 from Caa1.

The downgrade largely reflects the pressure which the incremental debt places upon second-lien holders and the reduction of the equity cushion which will result from the redemption of the preferred stock, the agency noted.

The outlook is stable.

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