S&P: Emmis Communications on watch

Standard & Poor's said it placed all ratings on Emmis Communications Corp., including the B+ long-term corporate credit rating, on CreditWatch negative, acknowledging concerns related to the company's plans to repurchase shares and explore strategic alternatives for its TV business.

Also on watch are Emmis' B+ rated secured bank loan, B- rated senior unsecured debt and subordinated debt and CCC+ rated convertible preferred stock.

The company plans to buy back its shares at a cost of up to $400 million, which, if entirely debt-financed, could increase the company's debt to EBITDA ratio to more than 8x from around 6x at Feb. 28.

S&P said additional uncertainty relates to the valuation and use of proceeds of a potential sale of all or a portion of Emmis' TV business, and the timing of convincing growth in general radio ad demand.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.