Antenna TV Assigned BB- Rtg by S&P; Outlook Positive.NEW YORK--(BUSINESS WIRE)--Standard & Poor's CreditWire 8/4/97-- Standard & Poor's today has assigned its double-'B'-minus corporate credit rating to Antenna TV S.A., and also assigns Individuals to whom property is, will, or may be transferred by conveyance, will, Descent and Distribution, or statute; assignees. The term assigns is often found in deeds; for example, "heirs, administrators, and assigns to denote the assignable nature of its double-'B'-minus rating to the company's proposed US$100 million senior notes issue. The outlook is positive. Antenna owns and operates the leading television broadcasting network and program producer in Greece, with 1996 sales of Greek drachma Dr25 billion ($92 million). It is the first Greek television broadcaster to be rated by Standard & Poor's. The ratings reflect Antenna's strong position in the relatively small, but growing Greek television broadcasting market, which benefits from regulatory barriers to entry, and the company's good operating track record. These factors are tempered by Antenna's limited free cash flow generation to date, which is partly due to the capital intensive nature of its program production activities. The stable political and improving economic environment within Greece (sovereign foreign currency rating outlook revised to positive in April 1997) help support the rating and outlook. Antenna has grown steadily since its inception in 1989. It holds the top share (37%) of television advertising revenues (television expenditures comprise a high 66% of total advertising expenditures in Greece), and has leading positions in audience share and ratings among the seven national television networks. Antenna's competitive position is boosted by its strong Greek language Greek language, member of the Indo-European family of languages (see Indo-European). It is the language of one of the major civilizations of the world and of one of the greatest literatures of all time. programming capability, which is preferred by Greek consumers. The company produces about half of the country's entire Greek language television production (excluding news programming), and over 75% of its own broadcasted programming, which gives it control over quality and costs. Antenna's strong position in local programming helps compensate for the more cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. nature of its advertising revenues, which comprise the bulk of company revenues (87% in 1996), and provides potential to generate future revenue from program sales. Antenna's broadcasting cash flow margin (operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. before depreciation and amortization minus current programming amortization) has grown steadily to the current 37% level (from 7% in 1992), and further growth is expected as Antenna derives more value from its growing programming library and increases the proportion of reruns in its programming mix. While such profitability trends are positive, Antenna has yet to generate significant free operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. (after programming expenditures). While programming expenditures will remain significant, they will comprise a smaller part of Antenna's growing revenue base. Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become (net of programming expenditures) interest cover is expected to be around 3 times in 1997. Repayment of interest and principal is subject to foreign exchange risk, as Antenna will have to service its U.S. dollar debt and foreign acquired programming from drachma-denominated cash flows. Although the notes are unsecured Unsecured A loan or equity interest that is given without any guarantee of payment, performance, satisfaction or opportunity for return from the recipient. No property, interest or security is used as collateral in either a guarantee or a pledge. , they will comprise the only debt outstanding. Standard & Poor's does not anticipate the addition of any debt that would rank senior to the notes, hence there is no notching notching Radiology Small grooves on the anterior aspect of ribs seen on a plain CXR of children with post-ductal–ductus arteriosus coarctation of the aorta, due to 'tracks' from the pressure of collateral vessels on the ribs down Antenna's issue rating from the corporate credit rating. Antenna is privately owned with management holding a 25% interest, and three other large minority shareholders. Ratings assume that any future potential minority buyout Buyout The purchase of a company or a controlling interest of a corporation's shares. Notes: A leveraged buyout is accomplished with borrowed money or by issuing more stock. would not weaken the position of bondholders. OUTLOOK: Positive. Although programming expenditures will remain significant, free cash flow generation is expected to improve (but still remain relatively moderate) as Antenna grows its revenue base, leverages its programming library and as capital expenditures ease. Standard & Poor's believes that Antenna will be able to cushion Cushion In the context of project financing, the extra amount of net cash flow remaining after expected debt service. cushion See call protection. foreign exchange risk over the first five years of the issue through forward hedges. Provided that that free cash flow grows in line with expectations and Antenna maintains its strong competitive position in the growing Greek broadcasting market, ratings could be raised in the next few years, Standard & Poor's said. ---CreditWire CONTACT: Kathryn E Cronin, CFA (Computer Fraud and Abuse Act of 1986) Signed into law in 1986, the CFA was a significant step forward in criminalizing unauthorized access to computer systems and networks. The Act applies to "federal interest computers" that include any system used by the U.S. , (44) 171-826-3520 |
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