S&P: IMG on negative watch

Standard & Poor's said it placed the ratings, including the B corporate credit rating, on IMG Worldwide Holdings Inc. on CreditWatch with negative implications.

The CreditWatch listing follows news that William Morris Endeavor Entertainment's and private equity firm Silver Lake have reached an agreement to purchase IMG.

The transaction is subject to customary closing conditions. The terms of the deal, including the purchase price, were not announced, S&P said.

However, numerous credible reports cite a purchase price of $2.3 billion to $2.4 billion, the agency said.

As a result, the CreditWatch listing reflects an expectation that financing for the acquisition could include additional debt at the combined entity, given the significant reported purchase price and integration risks that are customary in acquisitions of this size, S&P said.

The CreditWatch listing also considers an expectation that financing for the acquisition could include additional debt at the combined entity given the significant reported purchase price, the agency added.

It also takes into account integration risks that are customary in acquisitions of this size, S&P said.

The CreditWatch listing will be resolved following a review of the combined company's capital structure and business integration plans, the agency said.

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