S&P assigns SFX Entertainment, loan B+

Standard & Poor's said it assigned its B+ long-term corporate credit rating to SFX Entertainment Inc. The outlook is negative.

At the same time, SFX's proposed $575 million secured credit facilities were rated B+ with a recovery rating of 3, the agency said, noting borrowings under the proposed facilities are expected to be used to repay intercompany debt in connection with SFX Entertainment's spin-off from Clear Channel Communications Inc. and for general corporate purposes.

S&P added the rating on SFX Entertainment reflects financial risk from a high lease-adjusted debt to EBITDA ratio, a low EBITDA margin with the potential for only modest expansion and business volatility stemming from content availability, talent costs, the general economic environment and soft attendance trends.

These factors are partially offset by the company's good competitive position in the live entertainment industry, its significant geographic and format diversity and historical discretionary cash flow, the agency said.

© 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.