Tear Sheet: Radiate Holdco LLC

We continue to believe that Radiate is dependent on favorable business, financial, and economic conditions to meet its financial obligations long term. In addition, there is uncertainty regarding the company's ability to stabilize subscriber trends and penetration levels in the current competitive and macroeconomic environment. Furthermore, we believe that there is an increased likelihood that the company could have to refinance its upcoming secured and unsecured maturities in 2026 and 2028, respectively, at higher interest rates, which could limit free operating cash flow longer term. We believe Radiate will need to draw an incremental $115 million-$135 million on its revolving credit facility due 2025 (estimated to be 50%-60% drawn by year end), on free operating cash flow deficits of about

...Our ratings and outlook are unchanged following the company's fourth-quarter earnings call. We continue to believe that Radiate is dependent on favorable business, financial, and economic conditions to meet its financial obligations long term. In addition, there is uncertainty regarding the company's ability to stabilize subscriber trends and penetration levels in the current competitive and macroeconomic environment. Furthermore, we believe that there is an increased likelihood that the company could have to refinance its upcoming secured and unsecured maturities in 2026 and 2028, respectively, at higher interest rates, which could limit free operating cash flow longer term. We believe high capital spending and escalating interest expense will keep leverage elevated through at least 2023. We believe Radiate will need to draw an incremental $115 million-$135 million on its revolving credit facility due 2025 (estimated to be 50%-60% drawn by year end), on free operating cash flow deficits...

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