Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers R > Headlines for R.H. Donnelley Corp. > News item |
Fitch: R.H. Donnelley unaffected
Fitch Ratings said that R.H. Donnelley Corp.'s year-end leverage, at 6.75x following the $345 million acquisition of Business.com, will be slightly above the agency's expectations but within the parameters for a B+ company with R.H. Donnelley's business risks.
The company announced its planned acquisition of Business.com on Thursday and that the acquisition will be funded by debt and free cash flow. The agency noted that the ratings have incorporated the risk of smaller debt-financed acquisitions or other modest shareholder-friendly actions such as dividends or repurchases. Fitch expected leverage to remain above 5.5x on average over the next three to five years, but said management's capital allocation strategy and continued commitment to debt repayment remain an important consideration.ß
© 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.