TEXT-S&P: LIN TV rating not affected by subsidiary's announcement
Dec 11 - Standard & Poor's Ratings Services said today that its ratings and outlook on Providence, R.I.-based LIN TV Corp. are unaffected by the company's announcement that its wholly owned subsidiary, LIN Television Corp. is proposing to amend and extend its senior secured credit facility. This includes the 'B' corporate credit rating on LIN, as well as the 'BB-' issue-level and '1' recovery ratings on the term loan B. The outlook is stable. LIN hopes to amend portions of its existing senior secured credit facilities and reprice its existing term loan B. Amendments include extending the revolver maturity by one year to October 2017, loosening or eliminating a number of financial covenants, increasing the incremental facilities basket, and adjusting the excess cash flow sweep stepdowns. Leverage, which was 6.3x debt to last-12-months' adjusted EBITDA as of September 30, 2012, will be unchanged pro forma for the proposed transaction. The repricing will result in a modest improvement in EBITDA interest coverage and discretionary cash flow. Our rating on LIN reflects our assessment of the company's business risk profile as "fair" and its financial risk profile as "highly leveraged," based on our criteria. We view LIN's business risk profile as fair based on its portfolio of TV stations in midsize markets, strong position in local news, and an EBITDA margin comparable to its peers. Factors in our assessment of LIN's financial risk profile as highly leveraged include its high debt leverage and large contingent liability stemming from its guarantee of $815 million joint-venture debt. LIN's fully adjusted leverage of 6.3x, as of Sept. 30, 2012, is in line with our financial risk indicative ratios of debt to EBITDA of greater than 5x, for a highly leveraged financial risk profile. (For the latest complete corporate credit rating rationale, see Standard & Poor's research report on LIN Television, published Oct. 4, 2012, on RatingsDirect.)
- Putin dissolves state news agency, tightens grip on Russia media
- North Korea says Kim's powerful uncle dismissed for 'criminal acts'
- Thai PM calls snap election, protesters want power now |
- Cold, ice grip U.S. as more snow to blanket East
- Protesters fell Lenin statue, tell Ukraine's president 'you're next'