S&P ups LBI Media outlook to positive

Standard & Poor's said it revised its outlook on LBI Media Inc. to positive from stable, reflecting the company's solid operating performance relative to radio peers and more cost-efficient capital structure pro forma for its proposed refinancing.

The agency said that the corporate credit rating was affirmed at B.

At the same time, S&P said it assigned its CCC+ rating to LBI's proposed $225 million of senior subordinated notes due 2017.

Proceeds from the subordinated notes are expected to be used to repay $150 million of existing 10 1/8% senior subordinated notes due 2012, repay $53 million of borrowings under the company's revolving credit facility and fund the acquisition of a TV station in Salt Lake City, Utah, for $10 million, the agency said, noting that the ratings on LBI reflect its high debt leverage, cash flow concentration in a small number of large Hispanic markets in the United States, intense competition for audiences and advertisers from much larger rivals and the potential for additional debt-financed acquisitions.

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