S&P: Emerging Markets Communications LLC 'B' Rating Withdrawn On Acquisition By Global Eagle Entertainment Inc.
"The ratings withdrawal follows the completion of GEE's acquisition of EMC for $550 million," said S&P Global Ratings credit analyst Rose Askinazi.
The transaction was funded with $85 million in cash, 5.5 million shares of stock, and the assumption of $386 million in debt. The company will pay an additional $25 million of deferred consideration in cash or stock in 2017. While existing debt at EMC will remain outstanding, we do not currently rate GEE, and as a result, do not have sufficient information to determine the company's credit quality going forward.
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