S&P rates Adams Outdoor loan

Standard & Poor's said it assigned its B+ senior secured debt ratings to Adams Outdoor Advertising LP's planned $50 million seven-year senior secured revolving credit and $220 million 7.5-year senior secured first lien term loan facilities (first lien facilities). At the same time, recovery ratings of 4 were assigned to these facilities.

S&P also assigned its B- senior secured debt rating and its recovery rating of 5 to the company's planned $25 million eight-year senior secured second lien term loan facility (second lien facility).

Proceeds from these new credit facilities will be used primarily to refinance Adams' existing credit facilities, as well as the debt at the holding company parent, AOA Holding LLC.

In addition, S&P affirmed its B+ corporate credit and senior secured debt on Adams. The outlook is stable.

S&P said the ratings on Adams reflect the company's heavy debt levels and relatively small cash flow base. This is tempered by Adams' strong market positions, emphasis on the more stable local and regional advertising revenues, healthy operating cash flow margins, and moderate capital expenditures.

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