Moody's rates Radio One notes B2

Moody's Investors Service said it assigned a B2 rating to Radio One's proposed $200 million issuance of senior subordinated notes due 2015.

Proceeds from the transaction, availability under the company's revolving credit facility and cash on hand will be used to redeem the $310 million outstanding convertible preferred securities (High TIDES).

Moody's also affirmed Radio One's existing ratings, including the Ba3 senior implied, B1 senior unsecured issuer rating, B2 rated $300 million 8 7/8% senior subordinated notes due 2011 and B3 rated 6.5% convertible preferred securities, and changed the outlook to positive.

The ratings and positive outlook incorporate the likelihood of further deleveraging due to continued organic growth in cash flow, according to Moody's.

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