The Miami-based owner-operator of Spanish-language radio stations is adding the new debt to $235 million in existing senior subordinated notes due 2009.
In November last year, the company entered into a $250 million asset purchase agreement with the International church of the FourSquare Gospel to acquire the Los Angeles radio station KFSG-FM. It was the latest acquisition for a holding company that now owns and operates 24 Spanish-language radio stations.
The decision to issue the new debt came at a cost, however. Moody's Investor Service, the New York-based bond-rating service, assigned a B3 rating on the new debt and confirmed the B3 rating on the $235 million in existing notes, but lowered the over all outlook on the Miami company to negative from stable.
In explaining its decision to lower its outlook, Moody's cited the company's challenge of managing the aggressive acquisition strategy in a "notably weaker general environment for U.S. advertising."
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