Moody’s might drop Ingram Micro

Moody's Investors Service said it placed the ratings of Ingram Micro Inc. on review for downgrade following the announcement that Tianjin Tianhai, a subsidiary of HNA Group, reached a definitive agreement to acquire the equity of Ingram Micro for $6 billion in cash.

The companies did not announce whether Ingram's existing debt will be refinanced or assumed in connection with the closing of the acquisition.

The acquisition is expected to close in the second half of 2016.

Moody’s said the review reflects the uncertainty related to the post-acquisition capital structure, liquidity position and financial policies. It will also assess Tianjin Tianhai's and HNA's financial positions and whether Ingram Micro will need to upstream dividends to help pay for the acquisition or for other corporate purposes.

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