...Fitch placed the following ratings of Allied on Rating Watch Positive following the announcement of its merger agreement with Ares Capital Corporation (Ares): Long-term issuer default rating (IDR) `B+'; senior secured debt `BB/RR1'; and senior unsecured debt `B+/RR4'. Approximately $1.6 billion of debt is affected by these actions. Ares has agreed to purchase Allied in an all-stock transaction for $648 million, which represents a 27.3% premium to its closing stock price on Oct. 23, 2009, but a 51.7% discount to its June 30, 2009 book value. The transaction is expected to close by the end of the first quarter of 2010, subject to shareholder approval and certain lender consent. The Rating Watch Positive reflects Fitch's belief that Allied's debtholders will benefit from Ares' superior credit profile, improved funding flexibility, and the enhanced liquidity of the combined entity. The additional investment capital will provide an opportunity to better support Allied's legacy portfolio investments...
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| Report Type: | Newsletter
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| Company(ies): | AmeriGas Partners, L.P., Seagate Technology, Inc., Ball Corporation, The Interpublic Group of Cos., Inc., Solo Cup Company, Capmark Financial Group Inc, Mortgage Guaranty Insurance Corporation, Allied Capital Corporation, FairPoint Communications, Inc.
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| Ticker(s): | ALD , BLL , STX , IPG , APU , FRCMQ
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| Issuer: | Solo Cup Company
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| Free Sample: |
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| Format: | | PDF |  |
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