Media General’s pending merger with Young Broadcasting
Media General’s pending merger with Young Broadcasting led to improved ratings from Moody’s Investors Service, Moody’s said in a press release Monday. Moody’s improved Media General’s “Corporate Family Rating” to B1 from Caa1 because the merger (CD June 7 p20)…
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will mean “expanded coverage of US households as well as favorable geographic and network diversification,” said the release. Moody’s also assigned Ba1 to the company’s proposed $60 million “1st lien super priority revolver” and B1 to the proposed $900 million “1st lien senior secured term loan,” it said. Media General’s “Probability of Default Rating” was upgraded to B2-PD from Caa1-PD because of the merger’s “proposed all bank debt structure” and the “Speculative Grade Liquidity Rating” was upgraded “to SGL -- 2 from SGL - 3,” it said. Moody’s said the ratings are supported by Media General’s high revenue rankings and markets that “benefit from traditionally strong political advertising demand, good local news programs, and continued increases in non-cyclical cash flow which benefit from retransmission agreements.” Media General will be successful in “realizing planned synergies” totaling close to $30 million based on eliminating redundant costs, reducing interest expenses and an uplift in retransmission consent fees, Moody’s said.