Moody's rates Entercom notes B2

Moody's Investors Service said it affirmed Entercom Communications Corp.'s B1 corporate family rating and the B1-PD probability of default rating following the company's proposed transaction.

The Ba3 rating on the $250 million revolving credit facility due 2022 and term loan B-1 due 2024 were affirmed, along with the B3 rating on the $400 million senior notes issued by wholly owned subsidiary, Entercom Media Corp.

Moody's also said it assigned a B2 (LGD 5) rating to Entercom Media's proposed $300 million senior secured second-lien notes due 2027.

The outlook remains unchanged.

The proceeds from the new notes, along with about $17 million of cash and $89 million of revolver drawings, will be used to repay $400 million of the existing term loan B, the agency said.

Pro forma for the proposed transaction, total debt is expected to decrease by about $191 million, which will reduce its leverage to 5.1x from 5.7x as of the fourth quarter of 2018, Moody's said.

The ratings reflect the company's position as the second largest radio broadcaster in the United States with leading market positions in 22 of the top 25 markets, the agency said.

The company benefits from a geographically diversified footprint with strong market clusters in most of the areas it operates, which enhances its competitive position, Moody's said.

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