Moody's might upgrade Rockwood

Moody's Investors Service said it placed Rockwood Specialties Group, Inc.'s Ba1 corporate family rating, Ba1-PD probability of default rating and Ba1 senior notes due 2020 under review for upgrade following the announcement that Albemarle Corp. (Baa1/under review for downgrade) has agreed to acquire parent company Rockwood Holdings, Inc. for about $6.2 billion and will guarantee Rockwood's outstanding notes.

The transaction is expected to be financed with $1.5 billion of new debt financing, $2.2 billion of available cash and $2.5 billion of Albemarle stock.

The agency said the review reflects the positive impact the acquisition would have on Rockwood's credit profile. The review will focus on the ultimate capital structure and leverage following the transaction and the ability of Albemarle to deleverage and generate free cash flow after integrating both companies.

© 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.