Tear Sheet: CMG Media Corp.

Local TV broadcaster TEGNA Inc. terminated its agreement to be acquired by an affiliate of Standard General, which resulted in the termination of CMG Media Corp.?s proposed acquisition of TV stations from TEGNA--a deal that was contingent on the merger of Standard General and TEGNA closing. CMG is still evaluating its capital allocation priorities after the termination of the merger agreement. The company's S&P Global Ratings-adjusted gross leverage is currently elevated at about 7.4x on a trailing-eight-quarter basis as of March 31, 2023, and if it uses its excess cash for shareholder returns instead of to reduce debt, we believe it is unlikely that performance alone would be enough for the company to deleverage below our 6.5x downgrade threshold for

...*All figures adjusted by S&P Global Ratings. a--Actual. e--Estimate. f--Forecast. FOCF--Free operating cash flow. EBITDA, EBITDA margins, and leverage are calculated using average trailing- eight-quarters EBITDA (to balance the financial benefit of political advertising revenue in election years). Cash flow is calculated on a trailing-12-months basis. Figures for 2022-2024 are pro forma recent asset sales; 2021's are not pro forma recent asset sales....

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