Moody’s gives New Media facilities B2

Moody's Investors Service said it affirmed New Media Holdings II LLC's B2 corporate family rating and B3-PD probability of default rating following the company's announcement of a proposed amendment and extension of its first-lien credit facilities.

The agency assigned B2 ratings to the amended and extended $40 million revolver maturing in June 2022, and to the extended $374 million term loan maturing in June 2023 that includes a $30 million upsize.

Moody's also affirmed the B2 ratings on New Media's currently outstanding revolver maturing in 2019 and term loan maturing in 2020 and expects to withdraw these instrument ratings upon transaction close.

The proposed terms of the amended and extended credit facilities are similar to those of the existing debt.

The outlook is stable.

Moody’s said the transaction is modestly credit negative because it will increase debt and cash interest expense without a specifically identified use of proceeds and re-set the accordion to an additional $100 million subject to leverage thresholds. The agency expects New Media will use its sizable and increased cash balance to pursue acquisitions while weak secular trends continue to weigh on the company's financial performance, as well as to fund shareholder distributions.

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