Emerson Electric Co. has entered into an agreement to sell a 51% stake of its U.S.-based electronic systems business, Artesyn Technologies Inc., to private equity sponsor Platinum Equity in a debt and equity transaction of approximately $300 million cash, including proceeds from $250 million senior secured notes. The company expects the transaction to close in 2013, subsequent to receipt of pending foreign regulatory approvals. We are assigning our 'B' corporate credit rating to Artesyn. In addition, we are assigning a 'B' issue rating and '3' recovery rating to the company's $250 million senior secured notes due 2020 (issued by Artesyn Escrow Inc.). The secured notes have a first-priority interest on all borrower's collateral not constituting asset-based lending (ABL) revolving credit
