Moody's rates NextMedia loans B1, B3

Moody's Investors Service said it assigned B1 ratings to NextMedia Operating Inc.'s $50 million revolving credit facility and $240 million first-lien term loan and a B3 rating to the company's new $100 million second-lien term loan.

Additionally, Moody's lowered the corporate family rating to B2 from B1. The outlook is stable.

The proceeds from the transaction will be used to refinance the company's existing unrated $125 million revolver and $200 million 10.75% senior subordinated notes, as well as to finance the acquisition of KBAY-FM and KEZR-FM from Viacom for $80 million in cash.

Moody's said the downward revision to the corporate family rating reflects the increased debt burden as a result of the recently announced refinancing and acquisition, coupled with the expectations that the company will only be able to modestly reduce leverage over time even with a successful integration of these two stations with its existing radio operations plus continued growth of the outdoor business.

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