S&P rates Cumulus Media notes B

S&P said it assigned a B rating and 2 recovery rating to the proposed $300 million senior secured notes due 2027 issued by Cumulus Media Inc.'s subsidiary, Cumulus Media New Holdings Inc.

The 2 recovery rating indicates 70% to 90% expected default recovery.

The proceeds will be used to refinance a portion of its existing term loan B due 2022, which had about $1.2 billion outstanding as of March 31, S&P said.

The transaction does not affect the B- issuer credit rating or stable outlook on Cumulus because it is relatively leverage and cash flow neutral, the agency said.

S&P said it expects the company' adjusted debt-to-EBITDA ratio to decline to the 5.1x to 5.3x range in 2019, from 5.4x as of Mar. 31, 2019.

The agency said it believes the company will continue to pursue non-core asset sales in an effort to reduce its leverage.

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