S&P rates Terrier Media loan BB-, notes CCC+

S&P said it assigned a BB- rating with a 1 recovery rating to Terrier Media Buyer Inc.’s proposed $2.2 billion senior secured credit facility, consisting of a $325 million revolver and a $1.875 billion term loan. In addition, the agency assigned a CCC+ rating with a 6 recovery rating to Terrier’s proposed $1.165 billion of senior unsecured notes.

Proceeds will be used by Terrier, an affiliate of Apollo Global Management Inc., to acquire Northwest Broadcasting Inc. and Cox Enterprises Inc.’s TV and radio assets and form a newly combined entity. The newly formed combined entity will do business as Cox Media Group.

“Pro forma average trailing-eight-quarters leverage will be roughly 6.2x at transaction close, and the company’s financial policy will be driven by its financial sponsor ownership. We expect leverage will improve to below 6x in 2020, primarily because of retransmission revenue growth and strong political advertising revenue in a U.S. presidential election year, and substantial free operating cash flow (FOCF) to debt around 6%-8% in 2019 and 10%-12% in 2020,” said S&P in a press release.

The outlook is stable.

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