LONDON (Alliance News) - Moody's Investors Service on Wednesday said it has placed Inmarsat PLC's ratings on review for downgrade in light of an upcoming acquisition by a consortium.
Moody's placed the satellite telecommunications company's Ba2 corporate family rating and Ba2-PD probability of default rating on review due to the deal, which values Inmarsat's equity at USD3.4 billion.
The Ba3 ratings on Inmarsat's USD1.0 billion senior unsecured notes due 2022 and USD400 million senior unsecured notes due 2024 were also put on review.
Triton Bidco, a consortium led by UK private equity firm Apax Partners LLP, will pay USD7.21 in cash per Inmarsat share and take the company private.
Moody's Vice President Gunjan Dixit said: "The review for downgrade of Inmarsat's ratings reflects our expectation of increased leverage within the group after the buy-out transaction is complete. While the post-acquisition capital structure of Inmarsat currently remains unclear, the company will no longer be publicly listed and could end-up with a relatively more aggressive financial policy under private equity ownership."
The ratings review does depend on the acquisition being completed, as shareholder and regulatory approval are not yet obtained and the deal is not due to complete until the end of 2019.
Moody's said: "The review could result in a multi-notch downgrade of Inmarsat's ratings depending on the magnitude of leverage and the financial and operational strategy of the group after change in ownership."
Shares in Inmarsat were down 0.5% at 549.60 pence on Wednesday.
