S&P rates Entercom B+, loan BB-, notes B-

Standard & Poor's said it assigned a preliminary B+ corporate credit rating to Entercom Communications Corp. and its subsidiary, Entercom Radio LLC.

The outlook is stable.

The agency also said it assigned a preliminary rating of BB- to Entercom Radio's $395 million senior secured credit facilities with a preliminary recovery rating of 2, indicating 70% to 90% expected recovery in a default.

S&P also said it assigned a preliminary rating of B- to Entercom Radio's $250 million senior unsecured notes with a preliminary recovery rating of 6, indicating 0% to 10% expected recovery in a default.

The first-lien credit facilities consist of a $50 million revolving credit facility due 2016 and a $345 million term loan B due 2018.

The proceeds will be used to repay its existing debt.

The ratings reflect the company's highly leveraged financial risk profile, characterized by lease-adjusted leverage of 6.4x following the transaction, S&P said.

Entercom's business risk profile is fair because of the company's healthy EBITDA margin and discretionary cash flow generation, the agency 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.