S&P rates Townsquare Media loan BB-, notes B-

Standard & Poor’s said it assigned its B corporate credit rating to Townsquare Media Inc. The outlook is stable.

At the same time, S&P assigned a BB- issue-level rating and 1 recovery rating to Townsquare’s proposed $305 million senior secured credit facility, which comprises a $255 million term loan B due 2022 and a $50 million revolving credit facility due 2020. The 1 recovery rating indicates an expectation for substantial recovery (90%-100%) of principal for lenders in the event of a payment default.

S&P also assigned a B- issue-level rating and 5 recovery rating to the company’s $320 million senior unsecured notes due 2023. The 5 recovery rating indicates an expectation for average recovery (10%-30%; lower end of the range) of principal for lenders in the event of a payment default.

“The B corporate credit rating on Townsquare reflects our assessment of the company’s business risk profile as ‘weak’ and its financial risk profile as ‘highly leveraged,’” said S&P credit analyst Heidi Zhang in a news release.

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