New York—Ziff Davis Holdings, the parent company of Ziff Davis Media, announced it completed a refinancing last week that observers believe is a sign of strength at the publisher of PC Magazine and eWeek. Ziff Davis completed a private placement of $205 million in new senior secured floating rate notes due 2012. It used $178.0 million of the proceeds of the floating rate notes to retire all its outstanding senior bank debt and to pay related fees and expenses. The remaining balance of $27.0 million was added to its existing cash balance. In response to the refinancing, Standard & Poor’s Ratings Services raised the corporate credit rating on Ziff Davis Media to CCC+ from CCC. While applauding the refinancing, Standard & Poor’s also pointed out that hurdles still face the company. Ziff Davis’ "thin positive discretionary cash flow will turn negative when its compounding notes begin requiring cash interest payments in February 2007, unless the company can significantly improve its profitability and cash flow over the next two years," Standard & Poor’s said in a press release.