Moody’s: Radio One loan B2

Moody's Investors Service said it assigned B2 (LGD 3) to Radio One, Inc.'s proposed $350 million senior secured term loan B.

The proceeds will be used to refinance Radio One's existing term loan and pay related transaction costs, Moody’s said.

Moody's also said it affirmed Radio One's B3 corporate family rating, B3-PD probability of default rating and SGL - 3 speculative grade liquidity rating.

The outlook is stable.

The ratings reflect the company’s very high debt-to-EBITDA ratio of 7.9x at the end of 2016 pro forma for the proposed debt refinancing, which weakly positions the company in its B3 rating, Fitch said.

The credit metrics of Radio One increasingly rely on the cable network, TV One, given the trajectory of this segment's revenue and cash flow compared to the mature status of the company's radio operations, the agency explained.

The stable outlook incorporates good growth in TV One revenue due to contractual increases in carriage fees and incremental advertising revenue from a growing subscriber base, Moody’s added.

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