S&P: Andrew on developing watch

Standard & Poor's said it left its BB ratings on Andrew Corp. on CreditWatch, where they were placed with positive implications on May 31, revising the implications to developing from positive.

The agency said that the revision reflects an unsolicited offer by CommScope Inc. to acquire Andrew for $1.5 billion cash to Andrew's shareholders, which represents a $400 million premium to the current equity value of ADC Telecommunications Inc.'s shares.

According to S&P, if the CommScope acquisition closes on substantially the same terms as proposed, the combined company would have pro forma debt leverage of about 4.8 times trailing 12 months' EBITDA before giving effect to CommScope's outstanding pensions and ratings on the combined company would likely be lowered below the current BB on CommScope and BB on Andrew.

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