S&P rates iHeartMedia loan BB-, notes BB-, B-

S&P said is assigned a B+ issuer credit rating to iHeartMedia Inc. in anticipation of its emergence from Chapter 11 bankruptcy protection on May 1.

S&P also assigned a BB- issue-level rating and 2 recovery rating to the company’s proposed $3.5 billion senior secured credit facility and $800 million senior secured notes, and a B- issue-level rating and 6 recovery rating to its proposed $1.45 billion senior unsecured notes.

iHeartMedia also plans to issue a $450 million senior secured asset-based loan (ABL) facility, which is unrated, S&P said in a news release.

“The stable outlook reflects our expectation that leverage will approach 5x over the next 12 months due to a combination of voluntary debt repayment and EBITDA growth in the low-single-digit percent area, supported by modest revenue growth and cost-saving initiatives,” the rating agency said.

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