S&P: Persona on developing watch

Standard & Poor's said it placed its ratings, including the B long-term corporate credit rating, on Persona Communications Corp. on CreditWatch with developing implications following the announcement by Bragg Communications Inc. (not rated) that it had entered into a purchase and sale agreement with the current owners of Persona to acquire the company.

The transaction requires regulatory approvals, including approval from the Canadian Radio-television and Telecommunications Commission, for the transfer of Persona's broadcast licenses, the agency said.

"The CreditWatch placement is due to the fact that Bragg is a private unrated company," said S&P credit analyst Madhav Hari.

Persona's bank loan agreements governing its $230 million first-lien bank credit facilities and the $130 million second-lien bank credit facility state change of control as an event of default, the agency said, noting that it is its current understanding that these facilities will be redeemed upon close of the acquisition.

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