Moody’s assigns Caa3 to LBI notes

Moody's Investors Service said it assigned a Caa3 rating to LBI Media, Inc.'s new $204 million 11˝%/13˝% PIK toggle second priority notes due 2020.

The new notes will be used in the proposed exchange of LBI Media's 8˝% senior subordinated notes due 2017 ($54 million outstanding) and existing second priority notes due 2020 ($136 million outstanding) as well as to fund accrued interest, fees, related expenses and the addition of $6.8 million to balance sheet cash.

The Caa2 corporate family rating, Caa2-PD probability of default rating and B3 rating on the 10% senior secured notes due 2019 ($220 million outstanding) were affirmed.

The outlook remains negative.

Moody’s will withdraw the Ca rating on the company's existing 8˝% senior subordinated notes and Caa3 rating on the existing second priority subordinated notes upon repayment.

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