Moody's rates SFX CFR Caa1, loan B1, notes Caa1

Moody's Investors Service said it assigned a Caa1 corporate family rating to SFX Entertainment, Inc. in conjunction with the company launching a $230 million debt financing comprised of a $30 million revolving facility, which was rated B1, and a $200 million second-lien secured notes issue, which was rated Caa1.

As part of the same action, SFX was also assigned a Caa1-PD probability of default rating, a speculative grade liquidity rating of SGL-3 and a stable outlook.

Moody's said SFX's Caa1 corporate family rating stems primarily from the equity-like risks to which lenders are exposed, given the speculative nature of the company's future cash flow at this early stage of its acquisition-driven development.

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