S&P gives Learfield Communications parent B+, CCC+ loan ratings

S&P said it assigned its B corporate credit rating to A-L Parent LLC, parent company to Learfield Communications Holdings Inc. The outlook is stable.

At the same time, S&P assigned a B+ issue-level rating to parent and initial borrower A-L Parent LLC's proposed $540 million first-lien credit facility (consisting of a $475 million first-lien term loan due 2023 and $65 million revolving credit facility due 2021). The recovery rating on the first-lien facility is 2, reflecting an expectation for substantial (70%-90%; lower half of the range) recovery for lenders in the event of a payment default.

S&P also assigned a CCC+ issue level rating to the proposed $100 million second-lien term loan due 2024. The recovery rating on this debt is 6, indicating an expectation for negligible (0% to 10%) recovery for lenders in the event of a payment default.

Upon the close of the transaction, A-L Parent LLC will be merged into a Learfield Communications LLC, which will be the surviving borrower and rated entity.

“The B corporate credit rating reflects our belief that, despite incremental leverage to finance Atairos' acquisition of Learfield, our measure of lease- and guarantee-adjusted debt to EBITDA will likely be sustained below our 7x downgrade threshold,” said S&P credit analyst Emile Courtney in a news release.

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