This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Moody's To Review GenTek's Ratings

NEW YORK (AP) ¿ Moody's Investors Service on Monday placed the ratings of GenTek Inc. on review for possible downgrade after the maker of chemical products and engine components said it had agreed to be bought by a subsidiary of private-equity firm American Securities LLC.

Parsippany, N.J.-based GenTek said shareholders will receive $38 per share. That represents a 41 percent premium over GenTek's closing price of $27 on Friday, the last trading day before the agreement was signed.

The companies said the transaction was valued at $673 million, which includes $411 million in equity value and $262 million in debt and other liabilities.

Moody's said the review covers about $212 million of long-term debt. The review includes the company's family rating of "B1," its probability of default rating of "B1" and senior secured bank credit facility of "Ba3." Moody's changed the outlook for the company to under review from stable.

Moody's said it believes the deal would activate a change in GenTek's credit facilities that may trigger a possible refinancing.

GenTek shares jumped $10.76, or 40 percent, to close Monday at $37.76 on the acquisition announcement.

Copyright 2009 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $125.01 -0.63%
FB $78.10 0.70%
GOOG $524.46 -1.20%
TSLA $230.43 -1.08%
YHOO $41.66 0.87%

Markets

DOW 17,841.98 -86.22 -0.48%
S&P 500 2,080.15 -9.31 -0.45%
NASDAQ 4,919.6440 -19.6830 -0.40%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs