S&P: Kerzner International remains on watch

Standard & Poor's said that ratings on Kerzner International Ltd., including its BB- corporate credit rating, remain on CreditWatch with negative implications where they were placed on March 20, following Kerzner's announcement that the company would be acquired by a private investor group led by the company's chairman, Sol Kerzner and its chief executive officer, Butch Kerzner.

The agency said closing of the transaction is subject to, among other things, receiving the required regulatory approvals, a shareholder vote and the receipt of financing.

According to Schedule 13E-3 that was filed with the SEC, the total amount of funds required to complete the proposed merger and the related transactions, including payment of fees and expenses, is expected to be about $4.0 billion, the agency said.

The transaction and additional debt associated with outlined capital spending projects is expected to be funded through a combination of $2.9 billion of commercial mortgage backed securities, $575 million of bank debt and $1.5 billion of sponsor equity, S&P noted.

© 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.