S&P: CompuCom on watch

Standard & Poor's said it placed its B+ corporate credit rating, B senior unsecured rating and B- senior floating-rate PIK toggle notes on CompuCom Systems Inc. on CreditWatch with negative implications.

The CreditWatch placement follows the announcement that CompuCom has entered into a definitive agreement to be acquired by Court Square Capital Partners in a transaction valued at $628 million, expected to close in the second half of 2007, S&P said.

While the terms of the financing are not currently known, operating lease-adjusted leverage likely will increase from current levels in the mid-5x area, the agency noted.

The senior unsecured and toggle notes are expected to be refinanced as part of the transaction, the agency added.

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