Moody’s rates Cumulus, loan B3

Moody's Investors Service said it assigned a B3 corporate family rating to Cumulus Media New Holdings Inc. following the company's plan to emerge from bankruptcy and assigned a B3 rating to its new $1.3 billion first-lien senior secured term loan due 2022.

The outlook is stable.

Cumulus filed for Chapter 11 bankruptcy in November 2017. As part of the reorganization plan, $1,729,000,000 of secured term loans will be exchanged for $1.3 billion of new secured term loans and 83.5% of the equity and $610 million of unsecured notes and other unsecured claims will be exchanged for 16.5% of the equity upon exit from bankruptcy.

Debt will decrease by over $1 billion as part of the plan and reduce leverage from 10.8 times as of Q1 2018 to 6.1 times upon exit and allow management to focus on continuing to improve operations with a more sustainable balance sheet, Moody’s explained.

© 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.