AlliedSignal F1, A+ Rtgs Affd By Fitch IBCA On Honeywell Merger.NEW YORK--(BUSINESS WIRE)--June 8, 1999-- AlliedSignal's 'F1' commercial paper and extendible commercial notes, and 'A+' senior debt and medium-term note Medium-term note (MTN) A corporate debt instrument that is continuously offered to investors over a period of time by an agent of the issuer. Investors can select from maturity bands of: 9 months to 1 year, more than 1 year to 18 months, more than 18 months to 2 years, etc. ratings are affirmed by Fitch IBCA IBCA International Braille Chess Association IBCA Institute of Burial and Cremation Administration IBCA Integrated Business Communications Alliance IBCA International Barbeque Cookers Association IBCA Department of Interior Board of Contract Appeals following a preliminary review of the company's proposed merger with Honeywell Inc. The combination will be effected through a common share exchange, and the resulting company will be named Honeywell Inc. The merger is subject to approval by shareholders and regulatory authorities, and is expected to close in the fourth quarter of 1999. The combination unites two strong, profitable, and complementary businesses. This complementarity com·ple·men·tar·i·ty n. 1. The correspondence or similarity between nucleotides or strands of nucleotides of DNA and RNA molecules that allows precise pairing. 2. is strongest in the aerospace businesses, where the combination of Allied's expertise in safety systems and engines with Honeywell's in avionics results in strong capability to serve airframe producers. The combined company will also have ample opportunities for organic growth and financial flexibility to pursue acquisitions; goals for the combined enterprise are annual revenue growth of 8-10%, earnings per share growth in excess of 15%, and free cash flow exceeding $2 billion by 2002. Cost reductions will also contribute to earnings growth, and the new company aims to achieve annual savings of approximately $500 million by lowering overhead costs overhead costs see fixed costs. , accelerating Six Sigma quality initiatives, global sourcing, and research and development combinations. Each of two companies enters the union with solid profitability and a strong financial profile, which the all-share transaction preserves. If they had been combined for the year ended March 31, 1999, pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma revenues would have been $23.6 billion, operating income would have totaled $3 billion, and earnings before interest, taxes, depreciation, and amortization Earnings before interest, taxes, depreciation, and amortization (EBITDA) A financial measure defined as revenues less cost of goods sold and selling, general, and administrative expenses. (EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become ) $3.9 billion. The operating margin would have been 12.7%, compared with 13.5% for AlliedSignal alone and 11.4% for Honeywell. Debt relative to EBITDA for the combined enterprise at March 31, 1999 would have been a reasonable 1.28x, even before AlliedSignal reduced debt from selling investments. |
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