| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers M > Headlines for McClatchy Co. > News item |
S&P gives B- to McClatchy notes
S&P said it assigned its B- issue-level rating and 2 recovery rating to the McClatchy Co.'s (CCC+/stable/--) proposed $310 million senior secured notes. The 2 recovery rating indicates an expectation of substantial recovery (70%-90%; rounded estimate: 85%) of principal in the event of a payment default.
The company will use the proceeds from the new notes to help refinance its outstanding $344.1 million senior secured notes due in 2022. As part of the transaction, McClatchy will also refinance its $65 million revolving credit facility due in 2019 with a new $65 million asset-based lending revolver due in 2023 (unrated).
In conjunction with the refinancing of the senior secured notes, McClatchy has an agreement with a lender to refinance $275.5 million of the $365.4 million outstanding on its senior unsecured debentures due in 2027 and 2029. The new debt will consist of a $157.1 million tranche A term loan facility due in 2030 (unrated) and a $193.5 million tranche B term loan facility due in 2031 (unrated). A portion of the proceeds will help repay the outstanding $344.1 million senior secured notes due in 2022.
The ratings on the remaining senior unsecured debentures due in 2027 ($7.1 million outstanding) and 2029 ($82.8 million outstanding) are unchanged, including the CCC- issue-level rating and 6 recovery rating. The 6 recovery rating indicates an expectation of negligible recovery (0%-10%; rounded estimate: 0%) of principal in the event of a payment default.
“Our CCC+ issuer credit rating on the McClatchy Co. is unchanged because this transaction slightly increases leverage, and we continue to view the company's capital structure as unsustainable,” S&P said in a news release.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.