Moody’s assigns Centerfield Media, loans B2

Moody’s Investors Service said it assigned Centerfield Media Parent, Inc. a B2 corporate family rating and B2-PD probability of default rating. Moody’s also assigned a B2 rating to Centerfield’s proposed senior secured bank credit facilities, consisting of a $50 million revolving credit facility, a $400 million term loan B and a $100 million delayed-draw term loan B.

“Centerfield’s B2 CFR reflects the company’s small size and Moody’s expectation that Centerfield will remain acquisitive over the rating horizon and maintain financial leverage at high levels to help fund its strategic growth initiatives,” Moody’s said in a press release.

Proceeds will be used to fully refinance the unrated bank credit facilities, consisting of $340 million in outstanding term loans and a $25 million RCF, as well as add cash to the balance sheet to fund future acquisitions.

The outlook is stable. “Over the next 12-18 months, Moody’s expects good liquidity supported by positive free cash flow generation (i.e., CFO less capex less dividends) in the range of $40-$50 million, sufficient cash levels to fund M&A (cash balances totaled $30 million at Sept. 30, 2020, $80 million pro forma for the pending debt raise) and access to the new $50 million revolving credit facility,” the agency said.

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