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Prospect News home > News index > List of issuers P > Headlines for Pactera Technology International Ltd. > News item |
S&P puts Pactera on positive watch
S&P said it placed its CCC+ long-term issuer credit rating on Pactera Technology International Ltd. and issue rating on the senior unsecured notes the company guarantees on CreditWatch with positive implications. China Electronics Corp. plans to acquire Pactera for $500 million cash.
S&P placed the ratings on CreditWatch because it expects Pactera’s credit quality to improve following its proposed acquisition by CEC. The agency said it believes CEC will have better capacity to support Pactera than the highly leveraged HNA Group. CEC is a conglomerate focusing on information technology and is owned by the Chinese central State-owned Assets Supervision and Administration Commission.
“We believe CEC’s relatively low leverage, which we estimate to be less than 3x as of end-2018, places it in a better position to support Pactera. Furthermore, as a central SOE, it is possible that CEC could receive potential extraordinary support from the government,” said S&P in a press release.
The agency expects nearly all Pactera’s debt will be repaid along with the transaction. This includes the $109.5 million notes due in April 2021 and the $212.6 million loan under the company’s secured term facility.
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