S&P: Crown on negative watch

Standard & Poor's said it placed Crown Holdings Inc.'s BB+ corporate credit rating on CreditWatch with negative implications.

Crown has obtained debt financing commitments for this transaction, S&P said. The agency said it expects that Crown will raise permanent financing for the acquisition prior to closing.

The CreditWatch placement follows news that Crown will acquire Lata Lux Holding Parent Sarl, which is majority owned by affiliates of the Blackstone Group LP. This entity owns Mivisa. The $1.6 billion acquisition, which is subject to review by the European Commission and other competition authorities, is expected to close during 2014, the agency said.

The transaction is expected to be debt financed, S&P said, and pro forma adjusted debt leverage would likely increase to about 5x.

The transaction will diversify Crown's geographic footprint and provide growth opportunities, S&P said.

Mivisa is the largest metal food can packaging producer in both the Iberian Peninsula and Morocco and primarily serves the vegetable, fruit, fish and meat segments, the agency said.

The CreditWatch listing will be resolved as more information is available about the acquisition's business risks and financial risk profiles, S&P said.

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