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S&P puts McAfee on watch
S&P said it placed McAfee Corp.’s BB issuer rating and all its debt ratings on CreditWatch with negative implications.
The placement follows McAfee's announcement it agreed to be acquired by an investor group for about $14 billion of enterprise value, including the repayment of its debt. The group will partially fund the transaction with a $6.66 billion term loan and a $2.32 billion bridge loan, which will raise leverage above 9x from less than 4x currently.
“We will monitor any developments related to the proposed transaction, including the receipt of required approvals. We will also conduct a detailed review of McAfee's post-close business strategies, capital structure, and ongoing financial policy. We expect to resolve our CreditWatch by the close of the transaction. At that time, we anticipate downgrading McAfee by at least three notches to either B or B- given the currently available information on its planned debt issuance,” the agency said in a press release.
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