TEXT-S&P rates Jarden Corp convertible notes
Sept 12 - Standard & Poor's Ratings Services today assigned ratings to Rye, N.Y.-based diversified consumer products provider Jarden Corp.'s proposed $450 million senior subordinated convertible notes due 2018, issued under Rule 144A without registration rights. We rated the new subordinated notes 'B' (two notches below our 'BB-' corporate credit rating on the company) with a recovery rating of '6', indicating expectations of negligible (0% to 10%) recovery in the event of a payment default. (For the recovery analysis, see Standard & Poor's recovery report on Jarden, to be published on RatingsDirect following the release of this report.) Jarden has indicated that it will use up to $125 million of the net proceeds from the proposed note offering for the repurchase of its common stock, with the remaining proceeds for general corporate purposes. We expect net proceeds not used for share repurchases will be used for debt reduction over the next year. Jarden had about $3.4 billion of debt outstanding as of June 30, 2012. The 'BB-' corporate credit rating on Jarden reflects our assessment of its business risk profile as "fair" and financial risk profile as "aggressive". Key credit factors in our business risk assessment include Jarden's diversified business portfolio, well-recognized brand names, good market positions in numerous household product categories, and participation in several highly competitive businesses. We considered Jarden's leveraged financial profile, strong liquidity, and active acquisition strategy in our financial risk assessment. Credit measures will weaken somewhat following the issuance of the proposed notes, but will remain within the indicative ratio ranges for an aggressive financial risk profile, which include leverage, as measured by the ratio of adjusted debt to EBITDA, of 4x to 5x and funds from operations (FFO) to adjusted debt of 12% to 20%. For the 12 months ended June 30, 2012, we estimate leverage will increase to about 4.8x, from 4.4x and FFO to adjusted debt will decline to about 13%, from 14.7%. Related Criteria And Research -- Summary: Jarden Corp., July 31, 2012 -- Key Credit Factors: Criteria For Rating The Global Branded Nondurable Consumer Products Industry, April 28, 2011 -- Criteria Guidelines For Recovery Ratings On Global Industrial Issuers' Speculative Grade Debt, Aug. 10, 2009 -- 2008 Corporate Criteria: Rating Each Issue, April 15, 2008 Rating List Jarden Corp. Corporate credit rating BB-/Stable/-- New Rating Jarden Corp. Subordinated $450 mil. convertible notes due 2018 B Recovery rating 6
- U.S. forces carry out operation against al-Shabaab in Somalia
- Ukraine accuses Russia of 'undisguised aggression' as rebels advance |
- Marilyn Monroe sex film to be kept private |
- Actress Jennifer Lawrence contacts authorities after nude photos hacked
- Fast-food workers to launch intensified protests across U.S.