Moody’s could lift Axiall

Moody's Investors Service said it placed all long-term ratings for Axiall Corp. on review for upgrade following the announcement that Westlake Chemical Corp. will acquire Axiall in an all-cash transaction expected to close by the end of 2016.

The SGL-1 speculative grade liquidity rating is unchanged.

The review was prompted by a joint press release issued by Westlake and Axiall on June 10 indicating that Westlake agreed to acquire Axiall in an all-cash transaction for $33 per share, which, including the assumption of $1.4 billion in Axiall's debt at March 31, is equivalent to an enterprise value of about $3.8 billion.

Westlake's bid of $33 per share represents a significant increase over the initial bid of $20 per share on Jan. 27, 2016 and a modest premium to the company's 52-week average before the initial bid. Westlake has obtained sufficient committed bridge financing and the transaction does not have a financing contingency.

Both companies' boards approved the transaction but it is still subject to a shareholder vote by Axiall's shareholders and customary regulatory and anti-trust approvals before an expected closing in the fourth quarter of 2016.

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