S&P assigns Urban One notes CCC

S&P said it assigned a CCC rating and 3 recovery rating (rounded estimate: 60%) to Urban One Inc.’s new 8¾% senior secured notes due Dec. 31, 2022.

Urban One completed the exchange of its senior secured notes. “We do not view Urban One's completed exchange offer as a distressed exchange. Urban One completed an exchange offer for its $350 million 7 3/8% senior secured notes due April 15, 2022. About 99% of the existing notes were exchanged for new 8¾% senior secured notes due Dec. 31, 2022. Only about $3 million of stub notes remain, which we expect the company to redeem with cash on hand,” the agency said in a press release.

S&P affirmed Urban One’s CCC issuer rating and removed all its ratings from CreditWatch with negative implications where they were placed on Oct. 12.

The outlook is negative. “The negative outlook reflects the refinancing risk associated with the company's senior secured notes due December 2022 and the springing maturity of its senior secured term loan in September 2022,” S&P 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.