S&P: Trench Electric on positive watch

Standard & Poor's said it placed its B long-term corporate credit and CCC+ subordinated debt ratings on high voltage component manufacturer Trench Electric BV on CreditWatch with positive implications after it announced that Germany-based Siemens AG (AA-/stable/A-1+) plans to acquire the company.

"CVC Capital Partners, the company's majority shareholder and a leading European private equity firm, plans to sell 100% of the share capital in the parent, Trench Electric Holdings BV, to Siemens for a total consideration of US$340 million," said S&P credit analyst Michelle Aubin.

The transaction is expected to be completed in the second half of 2004, subject to regulatory approval. On completion, Trench's $151 million senior subordinated notes outstanding will be redeemed in full.

S&P said the ratings on Trench will be withdrawn on closure of this transaction.

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