S&P puts Merlin on watch

S&P said it placed the BB issuer credit rating on Merlin Entertainments plc and BB issue rating on the senior unsecured debt ratings on CreditWatch with negative implications.

Merlin recently announced an agreement to be acquired by an investor consortium comprising Blackstone, Kirkbi (Merlin's largest shareholder) and Canada Pension Plan Investment Board, in a deal valuing the company at about 12x EBITDA, S&P explained.

The agency said it understands that under the new ownership, the company is likely to implement a more aggressive financial policy, which could cap the financial risk assessment.

S&P said it expects to resolve the CreditWatch placement in the next three- to six-months, once there is a clear understanding of the new capital structure and financial policy post transaction.

© 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.