Computervision Rtgs Placed on S&PWatch Positive.NEW YORK--(BUSINESS WIRE)--Standard & Poor's CreditWire 11/5/97 --Standard & Poor's places its single-'B'-minus corporate credit rating and triple-'C' subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". rating of Computervision Corp. on CreditWatch with positive implications following its pending merger agreement with unrated Parametric Technology Corp. in a stock-for-stock transaction. The merger will significantly enhance Computervision's financial position as well as broaden its product and customer base. Bedford, Mass.-based Computervision and Waltham, Mass.-based Parametric Technology Corp. are providers of software application tools for the design automation market. Upon closing, Computervision will become a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. of Parametric Technology. Under the terms of the transaction, each share of Computervision common stock will be exchanged for .0866 shares of Parametric Technology common stock. The transaction is intended to be accounted for as a pooling of interests Pooling of Interests An accounting method, used in mergers and acquisitions, where the balance sheet items of the two companies are simply added together. Notes: The opposite of pooling of interests is the purchase acquisition method. and to qualify as a tax-free reorganization. Subject to several conditions, including regulatory approvals and approval of Computervision's shareholders, the transaction is expected to close in January 1998. Computervision's hi-coupon senior subordinated notes are currently redeemable Redeemable Eligible for redemption under the terms of an indenture. (at 102% of principal amount). If the bonds are redeemed re·deem tr.v. re·deemed, re·deem·ing, re·deems 1. To recover ownership of by paying a specified sum. 2. To pay off (a promissory note, for example). 3. , the ratings will be withdrawn, otherwise Standard & Poor's will assess the business strategies, integration issues, and growth objectives of the merged entity. -- CreditWire CONTACT: Philip Schrank, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of (1) 212-208-8843 For more information on criteria or subscriptions: http://www.ratings.standardpoor.com |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion