Research Update: CMG Media Corp. Upgraded To 'B-' From 'SD' On Completed Debt Exchanges; Outlook Stable

CMG Media Corp. has completed the partial exchange of its senior secured term loan due 2026 to a new $1.8 billion (following a $233 million debt paydown at transaction close) senior secured term loan due 2029. It also completed a partial exchange of its senior unsecured notes due 2027 to new $574 million second-lien senior secured notes due 2029. We view the company's capital structure as sustainable following its recent debt exchanges as the debt paydown at transaction close, future required debt repayment under the amended credit agreement, extended maturity runway, and cost reduction actions have increased its ability to reduce debt and leverage over time. As such, we raised our issuer credit rating on CMG to 'B-' from 'SD'

...- CMG Media Corp. has completed the partial exchange of its senior secured term loan due 2026 to a new $1.8 billion (following a $233 million debt paydown at transaction close) senior secured term loan due 2029. It also completed a partial exchange of its senior unsecured notes due 2027 to new $574 million second-lien senior secured notes due 2029. - We view the company's capital structure as sustainable following its recent debt exchanges as the debt paydown at transaction close, future required debt repayment under the amended credit agreement, extended maturity runway, and cost reduction actions have increased its ability to reduce debt and leverage over time. - As such, we raised our issuer credit rating on CMG to 'B-' from '##' (selective default). We also raised our issue-level ratings on the company's remaining $17 million senior secured term loan maturing in 2026 to 'B' from 'D' and its remaining $31 million senior unsecured notes due in 2027 to '###' from 'D'. - We also assigned...

Research Update