S&P rates Outfront unit notes B+

S&P said it assigned its B+ issue-level rating and 4 recovery rating to the proposed $400 million senior unsecured notes due in 2025 issued by Outfront Media Inc. subsidiaries Outfront Media Capital Corp. and Outfront Media Capital LLC.

The 4 recovery rating indicates an expectation for average (30%-50%; rounded estimate: 30%) recovery for lenders in the event of a default.

Outfront plans to use the proceeds to repay borrowings under its $500 million revolving credit facility maturing in 2024 ($495 million outstanding as of March 31).

“Our B+ issuer credit rating and negative outlook on Outfront are unchanged because the proposed transaction will not affect net leverage. We expect net leverage will increase to the mid-6x area in 2020 from 5.2x at year-end 2019 as a result of the coronavirus and resulting economic downturn, causing out-of-home advertising to decline,” S&P said in a press release.

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