MUMBAI (Thomson Financial) - Standard & Poor's Ratings Services said it has
raised Primedia Inc's corporate credit rating to 'BB-' from 'B', and removed all
ratings from positive watch on completion of sale of its Enthusiast Media
segment and its subsequent recapitalisation.
Primedia's ratings were originally placed on negative watch in Oct 2005
based on its announcement of selling its specialty magazine business. The watch
status was revised to positive in June 2007 as the company planned to use
proceeds from this sale to retire its existing debt.
S&P said it expects about 1.1 bln usd in net proceeds from the sale along
with Primedia's proposed 350 mln usd senior secured credit facilities and the
cash on hand will be used to repay all of its existing debt and accrued interest
and to fund a 96 mln usd shareholder dividend.
TFN.newsdesk@thomson.com
ndi/man
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