S&P lifts Townsquare notes

Standard & Poor’s said it raised the rating on Townsquare Media Inc.’s senior unsecured notes to B- from CCC+ and revised the recovery rating to 5 from 6.

The 5 recovery rating indicates 10% to 30% expected default recovery.

The actions follow Townsquare’s repayment of $20 million of senior secured debt that had priority claims on the company’s assets, S&P said.

Townsquare B corporate credit rating is unchanged, along with its BB- rating and 1 recovery rating on its senior secured credit facility, which consists of a senior secured revolver and a term loan.

The 1 recovery rating indicates 90% to 100% expected default recovery.

Townsquare’s pro forma leverage was 5.6x as of June 30, which is in line with a highly leveraged financial risk profile, S&P said.

Leverage is expected to remain at more than 5x over the next year, the agency added.

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