S&P puts Oglebay Norton on watch

Standard & Poor's said it revised its CreditWatch implications to negative from developing on Oglebay Norton Co., which has a B corporate credit rating, following the announcement that 18% shareholder Harbinger Capital Partners launched a $31-per-share cash tender offer for Oglebay's shares outstanding. The offer represents about a 30% premium over the trading price of the shares over the past 30 days.

The offer followed the announcement a few days ago by Oglebay that it was pursuing strategic alternatives to enhance shareholder value

The agency said that as a result of the premium attached to the unsolicited offer, it believes a higher likelihood now exists that a debt-financed transaction could result, potentially causing a material negative impact on the company's financial profile.

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