Moody's may downgrade K2

Moody's Investors Service said it placed K2 Inc.'s Ba3 corporate family and probability-of-default ratings and B1 (LGD4, 61%) $200 million senior unsecured notes due 2014 under review for possible downgrade. The SGL-3 speculative grade liquidity rating was affirmed.

The review follows Jarden Corp.'s announcement that it has signed a definitive merger agreement to acquire K2 for $10.85 and 0.1086 of a Jarden share for each K2 share. The total enterprise value of the transaction, including the assumption or repayment of debt, is about $1.2 billion. The transaction is expected to close in the third quarter.

The agency said its review will focus on the details of the transaction, the credit profile of the combined companies, the company's plans to address the change-of-control provision in the notes indenture and the position of K2's notes within Jarden's capital structure assuming these remained outstanding.

© 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.