S&P rates Entercom notes B-

S&P said it assigned a B- rating and 6 recovery rating to the proposed $300 million second-lien senior secured notes due 2027 issued by Entercom Communications Corp.'s subsidiary, Entercom Media Corp.

The 6 recovery rating indicates 0 to 10% expected default recovery.

S&P also said it raised the rating on the company's outstanding first-lien senior secured credit facilities to BB from BB- and revised the recovery rating to 1 from 2.

The 1 recovery rating indicates 90% to 100% expected default recovery.

S&P said it raised the rating on Entercom's outstanding first-lien senior secured credit facilities, including its revolving credit facility and term loan, to reflect an expectation that the company will reduce the amount of first-lien debt in its capital structure by $400 million.

The agency said it anticipates that the company will use the proceeds from the proposed second-lien notes, along with cash from its revolver and balance sheet, to reduce its outstanding B-1 term loan to $892 million from $1.3 billion.

S&P said it expects Entercom's adjusted net debt-to-EBITDA ratio to decline to 4.6x to 4.8x in 2019, from 6.1x as of Dec. 31, 2018.

This is due to decline in the company's restructuring costs, lower operating costs due to the realization of cost synergies and a stabilization in its revenue, the agency said.

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