S&P rates Red Ventures loan B+

S&P said it assigned its B+ issue-level rating and 3 recovery rating to the planned $400 million incremental senior secured term loan B issued by Red Ventures Holdco LP’s subsidiaries Red Ventures LLC and New Imagitas Inc. The 3 recovery rating indicates expectations for meaningful (50%-70%; rounded estimate: 55%) recovery for lenders in the event of a default.

Red Ventures will use the proceeds to help fund its previously reported acquisition of CNET Media Group.

“We expect the transaction to contribute to a rise in the company’s leverage to more than 6x in 2020, which is well above our 5.5x downside threshold for the current rating. However, we expect Red Ventures to subsequently reduce its leverage to less than 5x in 2021 as the global economy slowly recovers from the contraction caused by the Covid-19 pandemic.

The outlook is negative.

© 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.