The E.W. Scripps Co. Downgraded to 'BB-' from 'BB' On Debt-Financed Acquisition Plans; Outlook Stable; New Debt Rated

Cincinnati, Ohio-based TV broadcaster The E.W. Scripps Co. is issuing a $250 million senior secured term loan B to help finance its acquisition of Bounce Media LLC and Katz Broadcasting Holdings LLC. We expect leverage to rise meaningfully, with forecasted pro forma adjusted debt to average-eight-quarter EBITDA in the high-3x area as of year-end 2017 and in the mid-3x area in 2018. We are lowering our corporate credit rating on E.W. Scripps to 'BB-' from 'BB', and our issue-level ratings on the revolving credit facility to 'BB+' from 'BBB-' and the senior unsecured notes to 'BB-' from 'BB'. The recovery ratings are unchanged. We are also assigning our 'BB+' issue-level rating and '1' recovery rating to the company's proposed senior

...+ Cincinnati, Ohio-based TV broadcaster The E.W. Scripps Co. is issuing a $250 million senior secured term loan B to help finance its acquisition of Bounce Media LLC and Katz Broadcasting Holdings LLC. We expect leverage to rise meaningfully, with forecasted pro forma adjusted debt to average-eight-quarter EBITDA in the high-3x area as of year-end 2017 and in the mid-3x area in 2018. + We are lowering our corporate credit rating on E.W. Scripps to '##-' from '##', and our issue-level ratings on the revolving credit facility to '##+' from '###-' and the senior unsecured notes to '##-' from '##'. The recovery ratings are unchanged. + We are also assigning our '##+' issue-level rating and '1' recovery rating to the company's proposed senior secured term loan B. + The stable rating outlook reflects our expectation that E.W. Scripps will maintain adjusted debt to average eight-quarter EBITDA of 3x-4x over the next 12 months and that it could make TV station acquisitions that might temporarily...

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