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CAA Raises $75 Million In Debt Sale: Credit Ratings Agencies Issue Downgrade But Outlook Stable

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By Jill Goldsmith S&P Global and Moody’s Investors Services downgraded CAA Holdings Monday after the company raised $75 million in a debt sale as the agencies said canceled and postponed live events and shrinking agent commissions could impact revenue.

The outlook is stable, however, meaning, in the case of S&P, that “CAA will maintain sufficient liquidity to service all of its debt obligations and that productions and live events, including sports and music, will gradually return to pre-pandemic levels toward the end of fiscal year 2020 into 2021.” CAA insiders said the loan from investors was not necessary but the terms and timing were opportune and that the firm considered a cash cushion prudent given the current situation.

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