info

Yes No
Moodys.com
Terms of Use
REGULATORY AFFAIRS
CAREERS
ABOUT US
CONTACT US
HOME
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
Can't read?
Try a new set
Send Cancel
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
OK
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
OK
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 upgrades Cumulus CFR to B1 and assigns B3 ratings to proposed senior unsecured notes and Ba3 ratings to proposed credit facilities

25 Apr 2011

Ratings assigned to $3.025 billion of debt

New York, April 25, 2011 -- Moody's Investors Service ("Moody's") upgraded Cumulus Media, Inc.'s ("Cumulus") Corporate Family Rating ("CFR") to B1 from Caa1 due to the company's pending acquisition of CMP Susquehanna Corp. ("CMP") in the second quarter of 2011 followed by the announced $2.4 billion acquisition of Citadel Broadcasting Corporation ("Citadel") later this year. Transactions will be financed with approximately $3 billion of new debt facilities as well as up to $500 million of new equity. Moody's assigned a B3 (LGD6-90%) rating to the company's proposed $610 million senior unsecured notes due 2019 which will be used to refinance current outstandings under Cumulus' senior secured credit facilities. Moody's also assigned Ba3 (LGD3-38%) ratings to the proposed $375 million senior secured revolver and $2,040 million senior secured term loan B which will be used to refinance existing debt of CMP and Citadel. Ratings for existing facilities will be withdrawn upon closing of each of the debt issuances.

Moody's assigned a Speculative Grade Liquidity Rating 2 (SGL-2) based on expectations of good liquidity over the next twelve months. These actions conclude the review for upgrade that began in February 2011. The rating outlook is stable.

..Issuer: Cumulus Media, Inc.

Upgrades:

....Corporate Family Rating, Upgraded to B1 from Caa1

....Probability of Default Rating, Upgraded to B1 from Caa2

Assignments:

....$610 million Senior Unsecured Notes, B3 (LGD6-90%) - expected to be assumed by Cadet Holding Corporation when acquisition closes

..Issuer: Cadet Holding Corporation

Assignments:

$375 million Senior Secured Revolver, Ba3 (LGD3-38%)

$2,040 million Senior Secured Term Loan, Ba3 (LGD3-38%)

To Be Withdrawn As Applicable Transactions Close:

Issuer: Cumulus Media, Inc.

$20 million Senior Secured Revolver, Caa1 (LGD3-34%)

$648 million Senior Secured Term Loan, Caa1 (LGD3-34%)

Issuer: CMP Susquehanna Corp.

CFR, Caa1

... PDR, Caa1

$100 million Revolver due 2012, Caa1 (LGD3-48%)

$700 million Term Loan due 2013, Caa1 (LGD3-48%)

...$250 million Sr Subordinated Notes due 2014, Caa3 (LGD6-96%)

Issuer: Citadel Broadcasting Corporation

...CFR, Ba2

...PDR, Ba2

$150 million Sr Sec Revolver, Baa3 (LGD2-15%)

... $350 million Sr Sec Term Loan B due 2016, Baa3 (LGD2-15%)

$762 million Sr Sec Term Loan due 2015, Ba2 (LGD3-33%)

$400 million 7.75% Sr Notes due 2018, Ba3 (LGD5-71%)

Outlook is Stable

RATING RATIONALE

The B1 corporate family rating reflects Cumulus' high pro forma debt-to-EBITDA leverage of approximately 5.7x estimated for 12/31/2011 (including Moody's standard adjustments and treating 75% of preferred shares as debt, if issued) and assuming selling shareholders of Citadel require the maximum amount of cash payments, instead of stock. Ratings also reflect the cyclical nature of radio advertising demand evidenced by the revenue declines suffered by radio broadcasters during the recent recession, fragmentation of media outlets, and potential challenges associated with a large acquisition (Citadel has $740 million in revenue and 225 stations compared to $445 million in revenue and 346 stations for the combined Cumulus and CMP). Ratings are supported by the company's national scale, geographic and market diversity as well as expected 40% EBITDA margins. Post-transactions, Cumulus is expected to generate more than $300 million of annual free cash flow, or 10% of debt balances, from a well-clustered radio station portfolio that is effectively diversified by programming formats and audience demographics. Although revenues are expected to grow in the low to mid-single digit range through 2012, planned cost reductions will contribute to increasing free cash flow generation and debt reduction resulting in improved credit metrics. "Management has a multi-year track record of refining its proprietary technology platform and has been successful in driving down costs resulting in industry leading EBITDA margins. Management also confirms its strategy to reduce debt balances and targets reported gross debt-to- EBITDA ratios of 4.0x or better to gain operational and financial flexibility. In Moody's opinion, Cumulus' experienced management team and commitment to reduce debt balances provide rating support," stated Carl Salas, a Moody's Vice President and Senior Analyst.

Moody's believes the acquisitions will receive FCC approval and be completed by year end 2011 based on minimal market overlap in 6 markets. Approximately 13 stations have been identified for transfer to a trustee. Ratings assume successful execution; however, in the unlikely event the Citadel acquisition is not completed and there are no equity injections, the proposed $375 million revolver and $2,040 term loan would not be needed, and ratings could be downgraded given debt-to-EBITDA leverage of approximately 6.7x for the Cumulus borrowing group (including Moody's standard adjustments and assuming payment of Cumulus' portion of the termination fee).

The stable outlook reflects Moody's view that the acquisitions of CMP Susquehanna and Citadel will be completed in the expected time frame and that revenue and EBITDA will track along management's plan including success in achieving most of its synergy targets. "The outlook also incorporates Moody's expectation that Cumulus will maintain good liquidity and use free cash flow to reduce revolver or term loan balances resulting in debt-to-EBITDA leverage remaining below 6.0x (including Moody's standard adjustments) with free cash flow-to debt ratios of more than 9% in the near term. Financial metrics are expected to improve thereafter, consistent with management's target of 4.0x reported gross debt-to-EBITDA (or approximately 4.1x including Moody's standard adjustments)," added Salas.

Ratings could be upgraded if debt-to-EBITDA ratios are sustained below 4.5x (including Moody's standard adjustments) with good liquidity including free cash flow-to-debt ratios remaining above 10%. Absent sizable acquisitions, debt balances would also need to remain below $2.4 billion to accommodate likely EBITDA fluctuations in an economic downturn.

Ratings could be downgraded if debt-to-EBITDA ratios are sustained above 6.0x (including Moody's standard adjustments) due to the inability to achieve planned synergies or due to deterioration in performance as a result of increased competition in key markets, an economic downturn, or audience and advertising revenue migration to competing media platforms. Ratings could also be downgraded if leveraging events such as debt financed acquisitions or dividends result in debt-to-EBITDA ratios being sustained above 6.0x or if there is deterioration in liquidity. In the unlikely scenario the Citadel acquisition is not completed as planned and an equity injection is not funded, the proposed $375 million revolver and $2,040 million term loan would not be needed, and the CFR would likely be downgraded given potential debt-to-EBITDA ratios of approximately 6.7x for the Cumulus borrowing group (including Moody's standard adjustments and assuming payment of Cumulus' portion of the termination fee), a lower revenue base, as well as the absence of broader geographic and market diversification. In addition, coverage ratios would be weaker with approximately 1.8x EBITDA coverage of interest expense compared to approximately 3.2x under the Citadel acquisition scenario, and the committed revolver facility due May 2012 would be relatively small at only $20 million. Ratings on the new $610 million of Senior Unsecured Notes could potentially be downgraded.

The principal methodology used in rating Cumulus Media was the Global Broadcast Industry Methodology, published June 2008.

Corporate Profile:

Headquartered in Atlanta, Georgia, Cumulus Media Inc. ("Cumulus") is one of the nation's largest radio broadcasting companies, currently operating approximately 312 radio stations in 60 mid-sized markets. In 1Q2011 the company announced the acquisition of the remaining 75% of CMP Susquehanna Corporation ("CMP") it did not already own followed by the announcement that it entered into a definitive agreement to acquire Citadel Broadcasting Corporation ("Citadel"). Pro forma for these two acquisitions, Cumulus will be the second largest U.S. radio group with approximately 571 properties and $1.2 billion in station and network revenues as of December 2010. There will be one class of common shares with approximately 18%-27% to be owned by Crestview Partners, 7%-10% owned by the Dickey family, and the remainder broadly held among existing Cumulus and CMP shareholders and former Citadel shareholders.

REGULATORY DISCLOSURES

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

Moody's Investors Service considers the quality of information available on the issuer or obligation satisfactory for the purposes of maintaining a credit rating.

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.

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

The date on which some Credit Ratings were first released goes back to a time before Moody's Investors Service's Credit Ratings were fully digitized and accurate data may not be available. Consequently, Moody's Investors Service 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 the Credit Policy page on Moodys.com for the methodologies used in determining ratings, further information on the meaning of each rating category and the definition of default and recovery.

New York
Carl Salas
Vice President - Senior Analyst
Corporate Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

New York
John Diaz
MD - Corporate Finance
Corporate Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

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

Moody's upgrades Cumulus CFR to B1 and assigns B3 ratings to proposed senior unsecured notes and Ba3 ratings to proposed credit facilities
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