S&P: Roper on watch developing

Standard & Poor's said it placed its BB+ corporate credit and other ratings on Roper Industries Inc. on CreditWatch with developing implications.

Roper, a diversified industrial company, has announced it will acquire TransCore Holdings Inc. from an investor group led by KRG Capital Partners LLC in a transaction valued at about $600 million.

The purchase is expected to be funded with cash on hand, additional borrowings, and by raising about $250 million of cash through the issuance of common stock. However, the size of each of the components of this financing is subject to prevailing market conditions. The transaction is expected to close by the end of the year.

S&P said the completed acquisition could have a mildly positive affect on ratings, as the company is trending toward investment-grade statistics. If the deal were transacted with the equity cited, a likely outcome would be a positive outlook. On the downside, ratings could be lowered, although by no more than one notch, if the transaction were not funded with the equity contemplated.

The company's secured debt is rated BB+ and subordinated debt rating BB-.

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