Moody’s puts Jarden on upgrade review

Moody’s Investors Service said it placed Jarden Corp.’s Ba3 corporate family rating and Ba3-PD probability of default rating under review for upgrade following news that it signed a definitive agreement to be acquired by Newell Rubbermaid for about $20 billion.

Moody’s also said it placed Jarden’s instrument ratings, including its Ba1 senior secured ratings, Ba3 senior unsecured ratings and B1 senior subordinated ratings, under review for upgrade.

The review reflects an expectation that the acquisition by Newell will improve Jarden’s credit profile, as the debt will be repaid or assumed by Newell, the agency said.

Jarden will become a wholly-owned subsidiary of Newell at close of the transaction, which is expected during the first half of 2016, Moody’s said.

The transaction is subject to shareholder approvals for both companies and other customary closing conditions, the agency said.

The acquisition will be funded with a combination of equity and debt and the review will focus on the likely closing of the transaction, Moody’s added.

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