Moody’s changes UBM view to negative

Moody's Investors Service said it affirmed UBM plc's Baa3 long-term issuer and senior unsecured ratings, and revised the outlook to negative from stable.

The action follows UBM's announcement of the closing of the sale of PR Newswire to Cision, a business controlled by GTCR Canyon Holdings (Cayman), LP for $810 million gross cash proceeds (about £498 million net cash proceeds) and $31 million preferred equity on a fair value basis (roughly £20 million).

The company will be distributing £245 million, around 50% of the disposal proceeds to shareholders by way of a special dividend, with the remainder retained to provide greater financial capacity to drive growth via bolt on acquisitions in the events space.

Moody’s said the negative outlook and the affirmation of the Baa3 ratings consider the greater business risk profile of UBM post the sale of PR Newswire, balanced against the modest near-term reduction in net financial leverage expected to result from the transaction.

© 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.