Moody's rates dcp notes B2

Moody's Investors Service said it assigned dcp LLC and dcp Corp. a B2 corporate family rating and a B1 probability of default rating, along with a B2 (LGD 4, 65%) rating to the new $150 million five-year senior secured notes.

The outlook is stable.

Proceeds will be used to refinance the company's existing debt, fund a $90 million distribution to CP Investment Holdings LLC and to pay fees and expenses.

The ratings are reflective of the company's modest scale and its reliance on just four annual events, the Golden Globes, American Music Awards, Academy of Country Music Awards, and Dick Clark's New Year's Rockin' Eve, Moody's said, and one prime time reality show, So You Think You Can Dance, for the majority of its cash flow.

The ratings also consider the company's high pro forma debt-to-EBITDA leverage of about 5x and modest free cash flow generation, the agency said.

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