Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers A > Headlines for Albemarle Corp. > News item |
Moody's might downgrade Albemarle
Moody's Investors Service said it placed Albemarle Corp.’s Baa1 senior debt rating under review for possible downgrade following its announcement that it agreed to acquire Rockwood Holdings, Inc., parent of Rockwood Specialties Group, Inc. (Ba1/under review for possible upgrade), in a transaction valued at about $6.2 billion.
The transaction is expected to be financed with $1.5 billion of new debt financing, $2.2 billion of available cash and $2.5 billion of Albemarle stock.
The agency said the review reflects the expected deterioration in Albemarle's credit metrics following the acquisition due to the significant increase in debt. Pro forma for the transaction, Albemarle's ratio of debt to EBITDA will exceed 4 times, up from 2.2 times as of March 31, according to Moody’s. The review will focus on the ultimate capital structure and leverage following the transaction and the ability of Albemarle to deleverage and generate free cash flow after integrating both companies.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.