Moody’s rates Outfront facilities Ba1

Moody's Investors Service said it assigned a Ba1 rating to Outfront Media Inc. subsidiary Outfront Media Capital LLC's new $430 million revolver due 2022 and proposed $670 million term loan B due 2024.

The existing Ba3 corporate family rating of Outfront Media Inc. and the B1 rated senior unsecured notes due 2022, 2024 and 2025 issued by its subsidiary will remain unchanged.

The outlook remains stable.

Proceeds from the term loan will be used to repay the existing $660 million term loan B due 2021 and transaction-related expenses.

The transaction extends the maturity date of the company’s credit facility while increasing debt by about $10 million.

The ratings on the existing revolver and term loan B will be withdrawn after repayment.

Moody’s said the Ba3 corporate family rating reflects its market position as one of the largest outdoor advertising companies in the U.S. with positions in all the top 25 markets and more than 150 markets in the U.S. and Canada. The company is expected to generate good free cash flow, although the vast majority is expected to be distributed to shareholders as it operates as a REIT, the agency added.

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