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Bulletin: CenturyLink Inc.'s $3.2B Deal To Acquire Savvis Inc. Does Not Affect Ratings On Either Company
Standard & Poors, April 2011
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.
Abstract
NEW YORK (Standard & Poor's) April 27, 2011-Standard & Poor's Ratings Services said today that Monroe, La.-based telecommunications provider CenturyLink Inc.'s (BB/Stable/--) definitive agreement to acquire data center provider Savvis Inc. (B/Stable/--) in a transaction valued at about $3.2 billion does not immediately affect our corporate credit ratings on either company. CenturyLink plans to fund the acquisition with about $2.4 billion of cash and around $600 million of equity. About $2 billion of the cash consideration will be funded with new debt. We expect pro forma leverage to increase slightly to about 3.1x from 2.9x as of Dec. 31, 2010, although not sufficiently to change our assessment of the financial risk profile, which we view as significant. The leverage calculation...
Companies mentioned in this report are: CenturyLink, Inc.,Savvis Inc.
Action: Bulletin
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