Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers K > Headlines for Kerr-McGee Corp. > News item |
Fitch puts Kerr-McGee on watch
Fitch Ratings said it placed the rating of Kerr-McGee Corp. on Rating Watch negative following the proposal by Carl Icahn and Barry Rosenstein to monetize forward production and use the proceeds to repurchase shares.
Both Icahn and Rosenstein are seeking Kerr-McGee board of director seats. Fitch currently rates Kerr-McGee's senior unsecured debt at BBB.
On March 3, Icahn and Rosenstein suggested that Kerr-McGee do the following: (1.) Sell the chemical business; (2.) Execute a volumetric production payment (VPP) for 50 million barrels of oil equivalent of proved producing reserves over each of the next five years; (3.) Use the proceeds from the sale of the chemical business and the VPP to repurchase about 115 million shares, valued at more than $10.4 billion.
Fitch said it is skeptical that the transaction will take place as proposed. Nevertheless, there is additional pressure on Kerr-McGee management to execute a transaction that may diminish the credit quality of the company.
© 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.