S&P affirms R.H. Donnelley

Standard & Poor's said it affirmed its BB corporate credit ratings on R.H. Donnelley Corp. and its operating subsidiary, R.H. Donnelley Inc., as well as R.H. Donnelley Inc.'s B+ subordinated debt rating. In addition, S&P placed its B+ senior unsecured debt rating on R.H. Donnelley Inc. on CreditWatch with positive implications.

The outlook is stable.

The ratings affirmations follow R.H. Donnelley's agreement to acquire SBC Communications Inc.'s directory publishing business in Illinois and northwest Indiana, including SBC's 50% interest in the DonTech partnership, for $1.42 billion in cash or about 8.3x acquired 2004 EBITDA. The purchase price is after the settlement of a $30 million liquidation preference related to DonTech, which is an existing partnership between SBC and R.H. Donnelley for local sales into the Illinois and northwest Indiana SBC yellow pages.

The acquisition will be financed with an amendment and increase in R.H. Donnelley's existing credit facilities. The transaction is expected to close in the 2004 third quarter, subject to regulatory approval and certain closing conditions.

© 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.