On Nov. 21, 2005, Standard&Poor's Ratings Services assigned its 'B+' long-term corporate credit rating to SFX Entertainment Inc. The outlook is negative. At the same time, SFX's proposed $575 million secured credit facilities were rated 'B+', at the same level as the corporate credit rating, with a recovery rating of '3', indicating the expectation for meaningful (50%-80%) recovery of principal in the event of a payment default. Borrowings under the proposed facilities are expected to be used to repay intercompany debt in connection with SFX Entertainment's spin-off from Clear Channel Communications Inc. and for general corporate purposes. The Los Angeles-based promoter, producer, and venue operator for live entertainment will have approximately $383 million of debt outstanding, pro forma
