S&P assigns OEG, loan B

S&P said it assigned B ratings to OEG Borrower LLC and its planned $300 million term loan due 2029 and $65 million revolver due 2027. The recovery ratings on the loans are 3 (65%). The outlook is stable.

“Our B issuer credit rating reflects our expectation for aggressive leverage through 2023, the company's cash flow concentration in a few key assets, and significant potential investment spending over time. Somewhat offsetting these risks is the iconic nature of its Grand Ole Opry and Ryman Auditorium country music venues, a long track record of operating success, and favorable tailwinds for country music,” the agency said in a press release.

The loans are being issued in conjunction with Atairos Group Inc.’s and NBCUniversal’s acquisition of a 30% equity stake in OEG.

The stable outlook reflects the position that demand for live entertainment will drive an EBITDA recovery, such that OEG's pro forma debt to adjusted EBITDA will fall below the agency’s 6.5x downgrade threshold to the low- to mid-5x are in 2022, and potentially below 5x in 2023, S&P said.

© 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.