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S&P: GenCorp to sell GDX unit
GenCorp Inc. (BB-/stable/--) on Monday announced that it is in negotiations to sell its GDX Automotive unit. Standard & Poor's said that its ratings and outlook on the company are not yet affected pending further details on the possible transaction, which are expected later this week.
GDX contributed about 60% of GenCorp's total revenue but had an operating loss in the first quarter of 2004. Neither the sale price nor the use of proceeds has been announced, but the company said it will likely have to take a $250 million to $300 million charge.
If a definitive agreement is reached, the outlook could be changed or the ratings could be placed on CreditWatch, S&P noted. Issues that would be factored into an outlook change or CreditWatch placement include the sale proceeds, the use of proceeds, and any other strategic initiatives pursued by the company.
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