S&P ups Entercom view to positive, rates unit’s loan BB-

S&P said it revised its outlook on Entercom Communications Corp. to positive from negative and affirmed its B+ corporate credit rating on the company.

At the same time, S&P assigned a BB- issue-level rating and 2 recovery rating to Entercom Radio LLC's proposed $60 million revolving credit facility due 2021 and $460 million term loan B due 2023. The 2 recovery rating indicates an expectation for substantial recovery (70%-90%; upper half of the range) of principal in the event of a payment default.

Entercom Radio is a subsidiary of Entercom.

S&P said it will withdraw the existing issue-level ratings once the company’s bank debt and notes are repaid.

“The outlook revision reflects Entercom’s improved leverage and margin of compliance with its covenants as a result of EBITDA growth and debt repayment over the past three quarters,” said S&P credit analyst Jeanne Shoesmith in a news release.

“We expect that leverage, which was 4.5x as of June 30, 2016, and 5x a year earlier, will continue to decline as a result of EBITDA growth and debt repayment.”

© 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.