S&P: Mitchell on watch

Standard & Poor's said it placed its B+ corporate credit rating for Mitchell International Inc. on CreditWatch with negative implications.

The CreditWatch placement follows the announcement that an investment group led by Aurora Capital Group and including General Electric Pension Trust, has signed a definitive agreement to buy the company from its current owners, led by Hellman & Friedman LLC, the agency said.

S&P noted that while the terms of the acquisition have not publicly been announced, operating lease-adjusted leverage likely will increase substantially from current levels near 3 times, given the EBITDA multiples recently paid for similarly positioned software companies and the market's current tolerance for heightened leverage.

The ratings on Mitchell's existing senior secured bank facility were not placed on CreditWatch, as the term loan and any amounts outstanding under the revolving credit facility are expected to be repaid as part of the transaction, the agency added.

© 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.