Moodys.com
Close
Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:

PLEASE READ AND SCROLL DOWN!

By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

Terms of One-Time Website Use

1.            Unless you have entered into an express written contract with Moody’s to the contrary, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.               

2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

3.            To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.

4.            You agree to read [and be bound by] the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.     

5.            You agree that any disputes relating to this agreement or your use of the Information, whether sounding in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​

I AGREE
Rating Action:

Moody's affirms LIN's B2 CFR; downgrades the sr unsecured notes to B3 and the sr subordinated notes to Caa1

27 Oct 2011

$452 million of rated debt affected

New York, October 27, 2011 -- Moody's Investor Services downgraded LIN Television Corporation's ("LIN") 8.375% sr unsecured notes to B3, LGD 4 -- 58% from Ba3, LGD 2 -- 23% and downgraded the 6.5% senior subordinated notes to Caa1, LGD 5 -- 83% from B3, LGD 5 -- 73%. The downgrades were due to the issuance of a new $75 Million sr secured 1st lien revolver (unrated) and a new $125 million sr secured 1st lien term loan A (unrated) to redeem a portion of the 6.5% sr subordinated notes. In addition, Moody's affirmed LIN's B2 Corporate Family Rating (CFR) and Probability of Default Rating (PDR). The Speculative Grade Liquidity (SGL) Rating was also affirmed at SGL -- 2 and the rating outlook is stable.

Affirmed:

..Issuer: LIN Television Corporation

.Corporate Family Rating: Affirmed B2

.Probability of Default Rating: Affirmed B2

.Speculative Grade Liquidity Rating: Affirmed SGL -- 2

Downgrades:

..Issuer: LIN Television Corporation

. 8.375% Sr Unsecured Notes due 2018: Downgraded to B3, LGD4 -- 58% from Ba3, LGD2 -- 23%

.6.5% Million Sr Subordinated Notes due 2013 ($276 Million outstanding): Downgraded to Caa1, LGD5 -- 83% from B3, LGD5 -- 73%

.6.5% Class B Sr Subordinated Notes due 2013 ($141 Million outstanding): Downgraded to Caa1, LGD5 -- 83% from B3, LGD5 -- 73%

Outlook Actions:

..Issuer: LIN Television Corporation

....Outlook is Stable

To be withdrawn

..Issuer: LIN Television Corporation

....Existing Sr Secured First Lien Revolver due 2011: Ba2, LGD1 - 2%

Recent Events

On October 26, 2011, LIN entered into a new credit agreement for a $75 Million Senior Secured First Lien Revolver due 2016 (LIBOR + 300 bps) and a $125 Million Senior Secured First Lien Term Loan A due 2017 (LIBOR + 300 bps). The new debt issuance along with approximately $14 million of balance sheet cash will be used to redeem approximately $165 million of 6.5% Senior Subordinated Notes due 2013. We view this transaction as the first step towards the refinancing of near term maturities, primarily the 6.5% senior subordinated notes due 2013. We expect the company to be opportunistic in refinancing the remaining $252 million of Sr Subordinated Notes due 2013.

RATINGS RATIONALE

LIN's B2 Corporate Family Rating (CFR) reflects the company's leading market positions and good free cash flow (two-year average) generated from its geographically broad portfolio of middle market broadcast television stations, moderately high leverage, and overhang from LIN TV Corp.'s guarantee of the NBC JV debt. The company's strategic focus on duopoly operations in a majority of its markets leads to high in-market revenue share and good margins. These strengths are tempered by exposure to cyclical advertising revenue and the ongoing risk of audience diffusion resulting from media fragmentation. As of June 30, 2011, LIN's two-year average debt-to-EBITDA ratio was 5.6x (including Moody's standard adjustments, 5.0x for the trailing 12 months) and we expect LIN will utilize its free cash flow to further reduce debt balances, leading to improved capacity to fund an acquisition or dissolution of the NBC JV within leverage parameters consistent with its B2 CFR. Liquidity is good with minimum annual free cash flow of $50 million (or a minimum 8% of debt balances) over the rating horizon.

As noted previously, the NBC JV is a significant overhang that poses elevated risk to the company's credit profile given the decline in its asset value (as of December 2010, the NBC JV was valued at $254 million less than amount due under the note, improved from $366 million less as of December 2009) and shortfall in meeting interest payments on its $815.5 million loan from General Electric Capital Corporation ("GECC"). On January 28, 2011, Comcast acquired 51% of NBCUniversal, Inc. with GE owning the remaining 49%. Additionally, LIN TV Corp. and GE agreed to fund interest coverage shortfalls with loans based on LIN's ownership interests (LIN 20% / GE 80%). Ratings hinge on our expectation that LIN will utilize free cash flow to reduce debt and leverage to increase its capacity to finance an acquisition or other dissolution of the NBC JV, particularly if it occurs prior to the 2023 GECC loan maturity. Under most scenarios, an acquisition or dissolution of the NBC JV would be leveraging to LIN. LIN's capacity to fund a transaction without exceeding the leverage metrics expected in the B2 CFR (as would be the case if a transaction occurred in the near term) increases the longer it can forestall such an event, and could be reached in 2013 assuming free cash flow continues to be applied to reduce debt balances.

The CFR is affirmed at B2; however, as anticipated, the issuance of senior secured credit facilities to refinance the 6.5% senior subordinated notes, reduced the cushion provided by junior debt and resulted in the downgrades. The B3, LGD 4 -- 58% rating on the $200 million of guaranteed senior unsecured notes due 2018 and the Caa1, LGD 5 -- 83% ratings on the 6.5% Senior Subordinates Notes due 2013 reflect their effective subordination to LIN's new 1st lien senior secured bank credit facilities. The ratings are one and two notches below the CFR, respectively, and reflect weak recovery prospects in a default scenario. The B3 rating on the senior unsecured notes due 2018 is one notch below the B2 implied rating indicated by the loss given default model to incorporate the potential for LIN issuing additional secured debt to refinance at least a portion of the remaining $252 million of 2013 maturities. Depending on the amount of additional secured debt that LIN may raise to refinance remaining 2013 maturities, the senior unsecured notes due 2018 could be downgraded further to Caa1 from B3.

The stable rating outlook reflects our expectations that the company will maintain good liquidity, the two-year average debt-to-EBITDA ratios (includes political and non-political years) will remain below 6.0x over the rating horizon, and the company will have capacity to fund any debt service shortfalls of the NBC JV over the next 12-24 months. We believe LIN will utilize its free cash flow to repay debt and further reduce leverage creating flexibility to complete a transaction that would resolve the overhang from the guarantee of the NBC JV in advance of the GECC loan maturity in 2023.

An advertising downturn, cash distributions to shareholders, acquisitions or purchase/dissolution of the NBC JV that results in the two-year average debt-to-EBITDA ratios being sustained above 6.75x (including Moody's standard adjustments) could lead to a downgrade. Deterioration in liquidity including diminished capacity to cover debt service shortfalls at the NBC JV (that increases near term risk of a purchase/dissolution of the JV) or other cash requirements could also result in a downgrade. An upgrade is not likely until there is a clear path to resolution of the overhang related to the NBC JV.

Please see ratings tab on the issuer/entity page on Moodys.com for the last credit rating action and the rating history.

The principal methodology used in rating LIN Television was the Global Broadcast Industry Methodology published in June 2008. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.

LIN Television Corporation ("LIN"), headquartered in Providence, RI, owns and operates or programs 32 television stations, including two stations under local marketing agreements and four stations pursuant to shared services agreements, in 17 mid-sized markets in the United States. In addition, LIN TV Corp., the company's parent, owns 20% of KXAS-TV in Dallas, Texas and KNSD-TV in San Diego, California, through a joint venture with NBCUniversal Media, LLC (NBC JV). HM Capital Partners LLC ("HMC") holds an approximate 42% economic interest in LIN and approximately 70% of voting control is held by HMC and Mr. Royal Carson III, a LIN director and advisor for HMC. Through the 12 months ended June 30, 2011, the company generated revenue of approximately $425 million (excluding NBC JV revenue, which is accounted for under the equity method).

REGULATORY DISCLOSURES

The Global Scale Credit Ratings on this press release that are issued by one of Moody's affiliates outside the EU are considered EU Qualified by Extension and therefore available for regulatory use in the EU. Further information on the EU endorsement status and on the Moody's office that has issued a particular Credit Rating is available on www.moodys.com.

For ratings issued on a program, series or category/class of debt, this announcement provides relevant regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides relevant regulatory disclosures in relation to the rating action on the support provider and in relation to each particular rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides relevant regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

Information sources used to prepare the rating are the following: parties involved in the ratings, parties not involved in the ratings, public information, and confidential and proprietary Moody's Investors Service information.

Moody's considers the quality of information available on the rated entity, obligation or credit satisfactory for the purposes of issuing a rating.

Moody's adopts all necessary measures so that the information it uses in assigning a rating is of sufficient quality and from sources Moody's considers to be reliable including, when appropriate, independent third-party sources. However, Moody's is not an auditor and cannot in every instance independently verify or validate information received in the rating process.

Please see Moody's Rating Symbols and Definitions on the Rating Process page on www.moodys.com for further information on the meaning of each rating category and the definition of default and recovery.

Please see ratings tab on the issuer/entity page on www.moodys.com for the last rating action and the rating history.

The date on which some ratings were first released goes back to a time before Moody's ratings were fully digitized and accurate data may not be available. Consequently, Moody's provides a date that it believes is the most reliable and accurate based on the information that is available to it. Please see the ratings disclosure page on our website www.moodys.com for further information.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Carl Salas
Vice President - Senior Analyst
Corporate Finance Group
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

John Diaz
MD - Corporate Finance
Corporate Finance Group
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Moody's affirms LIN's B2 CFR; downgrades the sr unsecured notes to B3 and the sr subordinated notes to Caa1
No Related Data.
© 2019 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.

CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.

Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.

Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

​​​​​​
Moodys.com