CMG Media Corp. Downgraded To 'SD' From 'CC' On Distressed Debt Restructuring

CMG Media Corp. has completed a partial exchange of its senior secured term loan due 2026 to a new senior secured loan due 2029. It is also in process of completing an exchange of its senior unsecured notes due 2027 to new second-lien senior notes due 2029. We view the transactions as tantamount to a default because in our view, the company's lenders received less than they were originally promised without offsetting adequate compensation and, absent the transaction, we believed there was a realistic possibility of a conventional default. We therefore lowered our issuer credit rating on CMG to 'SD' from 'CC' and our issue-level rating on the company's senior secured term loan to 'D' from 'CC' and our issue-level

...November 4, 2024 - CMG Media Corp. has completed a partial exchange of its senior secured term loan due 2026 to a new senior secured loan due 2029. It is also in process of completing an exchange of its senior unsecured notes due 2027 to new second-lien senior notes due 2029. - We view the transactions as tantamount to a default because in our view, the company's lenders received less than they were originally promised without offsetting adequate compensation and, absent the transaction, we believed there was a realistic possibility of a conventional default. - We therefore lowered our issuer credit rating on CMG to '##' from '##' and our issue-level rating on the company's senior secured term loan to 'D' from '##' and our issue-level rating on the company's senior unsecured notes to 'D' from 'C'. NEW YORK (S&P Global Ratings) Nov. 4, 2024--S&P Global Ratings today took the rating actions listed above. We view the debt restructuring as distressed, and tantamount to a default because we...

Ratings Action