Moody’s rates Scripps notes Ba2, revolver Baa2

Moody's Investors Service said it assigned a Ba2 rating to E.W. Scripps Co.’s $400 million proposed senior unsecured notes due 2025 and a Baa2 to the new amended and extended $125 million senior secured revolver due 2022.

Note proceeds will be used to repay the existing roughly $391 million term loan B due 2020 and related fees and general corporate purposes.

Moody’s said the Baa2 rating on the revolver is the result of a change in capital structure from predominantly secured to unsecured with the revolver having a priority claim and benefiting from significant lift provided by the loss absorption assumed by the subordinate note holders in an event of default.

Concurrent with this action, Moody's affirmed Scripps' Ba2 corporate family rating and SGL-1 speculative grade liquidity rating.

The outlook is stable.

The transaction is credit positive as it improves the debt maturity profile of the company and locks in long-term rates in an escalating interest rate environment, the agency explained. The $25 million revolver upsize also provides Scripps with added liquidity though we do not expect the company to draw on the revolver.

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