S&P gives Urban One notes B-

S&P said it rated Urban One Inc.’s planned $825 million of senior secured notes due 2028 B- with a 3 recovery rating (rounded estimate: 55%) to refinance its whole capital structure. Concurrently, the agency upgraded Urban One’s issuer rating to B- from CCC.

“The proposed debt issuance will eliminate the company’s near-term refinancing risks and simplify its capital structure. Urban One has faced refinancing risks associated with the springing maturity of its existing $350 million senior secured term loan since 2018. In addressing that maturity paywall, the company executed numerous transactions that led to its current complex capital structure with a high-interest cost of roughly 8%,” S&P said in a press release.

The new notes would refinance its capital structure into one class of notes due in 2028 and ensure it obtains a clean auditor opinion on the 2021 audit related to its debt maturity schedule, the agency said.

The outlook is stable.

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