Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers D > Headlines for DS Services of America Inc. > News item |
S&P: Cott on negative watch, positive for DS Services
Standard & Poor’s said it placed Cott Corp.’s B+ long-term corporate credit rating on CreditWatch with negative implications.
The agency also said it placed the B- rating on DS Services of America Inc.’s senior secured notes on CreditWatch with positive implications.
The negative watch follows news that Cott entered into a definitive merger agreement to acquire DSS Group Inc., parent to DS Services, from Crestview Partners for about $1.25 billion, S&P said.
The agency said the acquisition will materially weaken Cott’s credit measures.
The CreditWatch positive placement on DS Services’ senior secured debt reflects the notes’ favorable position in Cott’s expected capital structure, S&P said.
The B long-term corporate credit rating on DS Services is unchanged.
S&P said it expects the $1.25 billion purchase price to be financed with $600 million of proposed senior unsecured notes, $350 million of assumed DS Services senior secured notes due 2021, $150 million of proposed preferred shares and a drawdown of the asset-backed lending facility, which Cott plans to increase to $400 million from $300 million.
The acquisition is expected to close within the next few months, the agency said.
© 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.