S&P rates FilmYard B, Miramax loans BB-, CCC+

Standard & Poor's said it assigned FilmYard Holdings LLC a B corporate credit rating and its subsidiary Miramax Film NY LLC's $325 million first-lien term loan a BB- issue-level rating with a 1 recovery rating, indicating the expectation of very high (90% to 100%) recovery in the event of a payment default.

S&P said it also assigned the subsidiary's $83 million second-lien term loan an issue-level rating of CCC+ with a recovery rating of 6, indicating the expectation of negligible (0% to 10%) recovery in the event of a payment default.

The outlook is stable.

The company will use the proceeds of the term loans to refinance the original $408 million term loan extended upon the Dec. 3 closing of its acquisition of the Miramax film catalog and related assets from the Walt Disney Co.

The B rating on FilmYard reflects the company's weak business risk profile, characterized by minimal business diversity as a pure film catalog with minimal investment in new films, as well as its highly leveraged financial risk profile, S&P said.

© 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.