S&P rates Communications Corp. of America loan B

Standard & Poor's said it assigned a preliminary B corporate credit rating on Communications Corp. of America.

S&P also said it assigned a B rating to the company's proposed first-lien credit facilities with a recovery rating of 4, indicating 30% to 50% expected recovery in a default.

The agency said it expects the first-lien credit facilities to consist of a $5 million revolving credit facility due 2017 and a $157.5 million senior secured term loan B due 2019.

The outlook is stable.

The company also is planning to issue $35 million of second-lien debt that will be held by its sponsor, Silver Point Capital, along with $7.5 million in common equity.

The proceeds will be used to repay its existing debt, accrued interest and transaction fees and expenses.

The ratings reflect an expectation that, despite high leverage, the company will be able to maintain adequate liquidity over the intermediate term, S&P said.

The company's business risk profile is considered weak, given its high geographic and network affiliate concentration, generally lower audience rankings and the potential for advertising cyclicality, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.