| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers S > Headlines for Stanley Black & Decker, Inc. > News item |
Fitch rates Stanley Black & Decker preferreds BBB
Fitch Ratings said it expects to assign a BBB rating to Stanley Black & Decker Inc.'s proposed offering of convertible preferred units and the security will be assigned a class C equity credit.
The company expects the units will initially consist of $550 million aggregate principal amount of junior subordinated notes due 2018 and contracts to purchase, for an aggregate of $550 million, shares of convertible preferred stock.
The junior subordinated notes will be equal in right of payment with the company's existing junior subordinated debt. The company expects to use the net proceeds from this offering to redeem its 5.902% junior subordinated notes due 2045, to improve the funded status of its pension obligations, to reduce outstanding short-term borrowings and for other general corporate purposes.
The company has an issuer default rating of A-, bank credit facilities rating of A-, senior unsecured notes of A-, convertible notes due 2012 of BBB+, junior subordinated notes of BBB, short-term issuer default rating of F2 and commercial paper rating of F2.
Black & Decker Corp. and Black & Decker Holdings LLC have an issuer default rating of A- and senior unsecured notes rating of A-.
The outlook is stable.
The ratings reflect the cyclicality of certain of the company's end-markets and integration risk associated with its recent merger with Black & Decker, although overall risk is mitigated by considerable liquidity, expectation of decreasing leverage and substantial cost synergies of at least $350 million, Fitch said.
Revenue growth, enhanced by the acquisition, as well as reduced costs at Black & Decker should expand future cash flow, the agency 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.