...April 23, 2024 - Italy-based cable manufacturer Prysmian announced it entered into a definitive agreement to acquire U.S.-based cable manufacturer Encore Wire Corp. (Encore) for $290 per share, implying an enterprise value of close to $4.2 billion (3.9 billion). The acquisition will be financed with debt of 3.4 billion and available cash balances of about 1.1 billion. - Upon transaction closing, the company's credit metrics will be weak for the '###-' rating and we anticipate that the company will not have any rating leeway for operating underperformance or further debt-financed acquisitions. The company's S&P Global Ratings-adjusted funds from operations (FFO) to debt will deteriorate to about 20%-25% in 2024, taking into consideration six months of EBITDA contribution from Encore. FFO to debt will recover toward 35% in 2025 and 40%-45% in 2026. - We anticipate that, over 2025-2026, the company will dedicate a material portion of its annual free operating cash flow (FOCF) of about 1 billion...
