S&P cuts Cumulus Media

S&P said it downgraded its ratings for Cumulus Media Inc. to CC from B- and its senior secured notes senior secured term loan to CC from B.

Cumulus Media announced it will offer its debtholders $800 in principal amount of new notes and term loan B due 2029 per $1,000 of par value of its $346 million outstanding senior secured notes due 2026 and $330 million outstanding senior secured term loan B due 2026. Lenders who do not participate will have their debt subordinated to the new debt.

“We view the proposed debt restructuring as distressed because the company's lenders will receive less than they were originally promised. In addition, Cumulus' S&P Global Ratings-adjusted gross leverage is currently elevated at more than 10x and we have little visibility into its ability to materially reduce its leverage ahead of its upcoming debt maturities,” S&P said in a press release.

The outlook is negative.

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