Moody’s rates Allen facility Ba3, notes Caa1

Moody’s Investors Service said it assigned a Ba3 rating to Allen Media, LLC’s proposed seven-year $530 million first-lien term loan B loan facility and five-year $25 million senior secured first-lien revolving credit facility. The agency also assigned a Caa1 rating to Allen’s proposed eight-year, $300 million of senior unsecured notes. The outlook is stable. The existing B2 senior secured credit facility rating will be withdrawn upon close of the transaction.

Allen will use the proceeds of the refinancing to repay the acquisition financing of the Weather Channel and TV broadcast assets of Bayou Broadcasting and fund the acquisition of certain TV broadcast assets of USA Television. To fund the transactions, including transaction fees and expenses, Allen Media will use the proceeds of the loans and notes, cash on hand and an equity contribution.

Moody’s affirmed Allen Media’s B2 corporate family rating and upgraded the probability of default rating to B2-PD, from B3-PD in connection with the proposed refinancing.

The facility is guaranteed by Allen Media Holdings, LLC and each existing and subsequently acquired or organized wholly owned domestic subsidiary of the company. The notes are guaranteed by the same, except for Allen Media Holdings.

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