S&P rates Granite loan B

Standard & Poor's said it assigned a B corporate credit rating to Granite Broadcasting Corp., along with B ratings to the company's $215 million senior secured term loan B due 2018 with a recovery rating of 3, indicating 50% to 70% expected recovery in a default.

The company also issued $45.6 million of second-lien debt and $22 million of equity, both of which are held by its sponsor, Silver Point Capital.

The proceeds will be used to repay its existing debt, accrued interest and transaction fees and expenses.

The outlook is stable.

The stable outlook reflects an expectation that the company will maintain well in excess of a 10% EBITDA cushion of covenant compliance, S&P said, and adequate liquidity over at least the next 12 to 18 months as a result of EBITDA growth and modest debt repayment.

The ratings reflect the company's weak business risk profile and a highly leveraged financial risk profile, the agency said.

© 2015 Prospect News.
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