Moody’s assigns Urban One notes B3

Moody’s Investors Service said it assigned Urban One, Inc.’s proposed $825 million of senior secured notes a B3 rating.

Proceeds and balance sheet cash will be used to refinance all outstanding debt.

Concurrently, the agency affirmed the B3 corporate family rating and B3-PD probability of default rating. Moody’s also changed the outlook to stable from negative.

“The change in the outlook to stable reflects the extension of Urban One’s debt maturities to 2028 as well as the reduction in debt from cash on the balance sheet. Pro forma leverage is expected to decrease to 7.3x from 7.8x as of Q3 2020 as a result of the approximately $63 million in debt repayment,” the agency said in a press release.

Moody’s also upgraded Urban One’s speculative grade liquidity rating to SGL-2 from SGL-3 due to the improved liquidity position. The ratings on the outstanding debt will be withdrawn after repayment.

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