Moody’s Investors Service (Moody’s) assigned CBS Radio Inc. (CBS Radio) a B1 corporate family rating (CFR) and assigned a Ba3 rating to the proposed $1.25 billion first lien credit facility consisting of a $250 million five year revolver and a $1 billion seven year term loan B. The proposed $460 million senior notes are rated B3. The outlook is stable.
The proceeds from the transaction will be distributed to CBS Corporation as part of the split off of CBS Radio from the parent company in addition to adding cash to the balance sheet and paying transaction fees. We expect the company to pursue an IPO and begin operating as a standalone company in early 2017.
A summary of Moody’s rating action is as follows:
CBS Radio Inc.
- Corporate Family Rating B1
- Probability of Default Rating B1-PD
- New $250 million revolver due 2021 assigned a Ba3 (LGD3)
- New $1 billion term loan B due 2023 assigned a Ba3 (LGD3)
- New $460 million senior notes due 2024 assigned a B3 (LGD5)
- SGL-2 assigned
- Outlook: stable