S&P lowers Octave Music view to stable

S&P said it revised the outlook on the Octave Music Group Inc. to stable from negative and affirmed all of its ratings, including its B issuer credit rating.

The recovery ratings also are unchanged.

Octave was formerly known as TouchTunes Networks Interactive Inc., S&P noted.

The agency said it now expects improved cash flow, leverage and liquidity metrics in 2019 because of improved cash flow generation, repayment of debt and the easing of covenant requirements.

Octave also is amending its senior secured credit facilities to extend their maturities by two years and relax its maximum first-lien net leverage covenant, S&P said.

The stable outlook reflects an expectation that the company will maintain free operating cash flow-to-debt at higher than 5% on a sustained basis and adjusted leverage will remain at less than 6x with the company directing free cash flow generation toward debt repayment, the agency said.

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