S&P rates Paxton Media loans B+

Standard & Poor's said it assigned Paxton Media Group LLC a preliminary B+ corporate credit rating and B+ ratings to Paxton's proposed $240 million senior secured credit facilities due 2016 with a recovery rating of 3, indicating expectation of 50% to 70% recovery.

The credit facilities consist of a $210 million term loan B due 2016, $20 million term loan A due 2013 and a $10 million revolving credit facility due 2015.

The outlook is stable.

Proceeds will be used to refinance Paxton's unrated credit facilities maturing in March 2011.

"The B+ rating on Paxton reflects our expectation of a modest 2% decline in EBITDA in 2010 and 4% in 2011 due to continued advertising revenue declines," S&P analyst Hal Diamond said in a statement.

"We expect the company to perform in line with our thresholds for the rating, including adjusted leverage between 4x and 5x and EBITDA coverage of interest above 2.75x."

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