S&P puts WillScot on positive watch

S&P said it placed all its ratings for WillScot Corp. on CreditWatch with positive implications after the company announced it has agreed to merge with Mobile Mini Inc. in an all-stock transaction that would value the combined company at about $6.6 billion.

“As a result, we expect the combined entity will have better credit metrics than WillScot's stand-alone metrics, as Mobile Mini historically has a more conservative financial policy. We estimate, on a pro forma basis, the combined company's EBIT interest coverage would be in approximately the low-1x area and funds from operations (FFO) to debt in the low-teens percent area based on 2019 year-end financials,” said S&P in a press release.

S&P expects to resolve the CreditWatch placement when the merger closes or sufficiently sure to occur.

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