S&P puts Great Lakes Dredge on watch

Standard & Poor's placed its B+ corporate credit rating on Great Lakes Dredge & Dock Corp. on CreditWatch with negative implications.

The CreditWatch placement followed the company's recent announcement that Madison Dearborn Partners LLC (unrated) is acquiring it for $340 million. Vectura Holding Co. LLC (unrated), the majority owner of Great Lakes Dredge & Dock, has signed a definitive agreement to sell the company to Madison Dearborn.

Although the financing necessary to complete the transaction has been committed, S&P said, details have not been disclosed. However, Madison Dearborn, as an equity sponsor with more than $7.5 billion of investments, may further increase debt leverage of Great Lakes Dredge & Dock.

S&P said it will meet with management to discuss the new capital structure, liquidity, and any changes to the business strategy under new ownership before taking a further rating action.

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