Moody's might downgrade Sigma-Aldrich

Moody's Investors Service said it placed Sigma-Aldrich Corp.’s A2 long-term issuer rating and the A2 rating assigned to its $300 million senior notes due 2020 on review for downgrade.

The review follows the announcement that the company agreed to be acquired by Merck KGaA (A3) for $140 per share. The purchase price will be financed by Merck using cash and debt.

The agency said the review will primarily focus on the final financing arrangements for the proposed acquisition, the strategic fit of the two companies, Merck’s credit profile after the acquisition of Sigma-Aldrich, the regulatory and other approvals necessary to complete the transaction and what will ultimately become of the outstanding notes due 2020.

If the notes remain in place after the close of the transaction, they will likely be rated in line with Merck’s senior debt, Moody’s said.

© 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.