S&P: Outfront Media unaffected by add-on

Standard & Poor’s said the BB- rating and 4 recovery rating on Outfront Media Inc.’s senior unsecured notes due 2024 are not affected by the company’s proposed $100 million add-on.

The 4 recovery rating indicates 30% to 50% expected default recovery.

Outfront Media’s wholly owned subsidiaries, Outfront Media Capital LLC and Outfront Media Capital Corp. are co-borrowers of this debt.

With this additional debt issuance, the agency said it expects that Outfront Media’s pro forma adjusted leverage will increase to about 4.8x from 4.6x as of Dec. 31, 2014.

The company intends to use $50 million of the net proceeds to repay revolver borrowings with the remainder for general corporate purposes, the agency said.

The ratings reflect Outfront Media’s satisfactory business risk profile because of its strong position in large- and midsize-outdoor advertising markets, S&P said.

The ratings also consider the moderate structural pressure it faces compared with other media companies due to less competition from online advertising, the agency said.

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