Terrier Media Buyer Inc.'s $150 Million Term Loan Add-On Rated 'B+' (Recovery: '2'), Senior Secured Debt Rating Lowered

CHICAGO (S&P Global Ratings) June 23, 2020--S&P Global Ratings today assigned its 'B+' issue-level rating and '2' recovery rating to Terrier Media Buyer Inc.'s (Cox Media Group) $150 million add-on to its senior secured term loan due 2026. At the same time, we lowered our issue-level rating on the company's existing senior secured credit facilities, comprising a $325 million first-lien revolver due 2024 and a $2.025 billion first-lien term loan due 2026, to 'B+' from 'BB-' and revised our recovery rating to '2' from '1' to reflect the increased amount of secured debt in its capital structure. Cox Media plans to use the proceeds from the add-on for general corporate purposes. Our 'B' issuer credit rating and negative outlook on

...the spread on the revolving credit facility rises to 5% as covenant amendments are obtained; and all debt includes six months of prepetition interest. - We value the company on a going-concern basis using a 6.5x multiple of our projected emergence EBITDA. This multiple is in line with the multiples we use for the similar size television broadcasters we rate. Simplified waterfall - EBITDA at emergence: $360 million - EBITDA multiple: 6.5x - Net enterprise value (after 5% administrative costs): $2.23 billion - ----------------------------------------------- - Estimated senior secured debt claims: $2.5 billion - --Recovery expectations: 70%-90% (rounded estimate: 85%) - Estimated total unsecured debt claims: $1.06 billion - --Recovery expectations: 0%-10% (rounded estimate: 0%)...

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