Moody's on Aug. 7 said it assigned Allen Media LLC a B2 corporate family rating and B3-PD probability of default rating.
The rating agency also assigned a B2 rating to the company's new $500 million senior secured term loan B, which will be allocated for refinancing existing debt, funding acquisitions of other media companies, providing dividend cash to shareholders and management, and paying transaction costs, with about $70 million of the capital raised held on the balance sheet in cash. Moody's expects liquidity to be good after the transaction.
The outlook on the company is stable.
Moody's said Allen Media's corporate family rating is constrained by the company's small scale and limited diversity.