Moody's: MacDermid outlook developing

Moody's Investors Service said it revised the outlook for MacDermid, Inc. to developing from stable following the announcement by the company that it had received a proposal letter from Daniel H. Leever, its chairman and chief executive officer, and Court Square Capital Partners to purchase all of its outstanding common stock for $32.50 per share. MacDermid's board of directors has formed a special committee of its outside directors to consider the proposed management buyout and the company's response to it. This committee will retain both financial and legal advisers and could evaluate other strategic options or additional offers for the company, the agency said.

The company has a Ba2 corporate family rating and Ba3 $301.5 million 9 1/8% guaranteed senior subordinated notes due 2011.

If current proposal proceeds as planned, Moody's said there are likely to be negative ratings implications given the significant amount of additional debt contemplated. The agency noted the existing revolving credit facility and the notes due 2011 benefit from a change-of-control provision and may be refinanced upon the completion of an acquisition by a third party.

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