Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers T > Headlines for Tribune Co. > News item |
S&P rates Tribune loans BB+
Standard & Poor's said it assigned Tribune Co.'s proposed $4.1 billion senior secured debt an issue-level rating of BB+ with a recovery rating of 1, indicating an expectation for very high (90% to 100%) recovery for lenders in the event of a payment default.
The senior secured debt consists of a $3.8 billion seven-year term loan B and a $300 million five-year revolving credit facility.
The company expects to use the proceeds to refinance its existing debt and to fund the $2,725,000,000 acquisition of television stations from Local TV LLC and FoxCo Acquisition LLC.
S&P said the ratings on Tribune reflect a "satisfactory" business risk profile and an "aggressive" financial risk profile, according to criteria. The agency views Tribune's business risk profile as satisfactory because of its significant size, scale and diversity as one of the largest TV station groups not owned by a major network (following the acquisition); good EBITDA margin; and strong conversion of EBITDA to discretionary cash flow. The rating also reflects the long-term structural changes in the consumption of media, with viewers shifting to alternative media for news and entertainment, the agency 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.