Fitch sees event risk of LBO of Dun & Bradstreet as near-term credit overhang Fitch Ratings stated: "Dun & Bradstreet (DNB) has not made any announcements regarding any strategic changes to the company's capital structure or ownership. However, news organizations have recently reported that D&B is no longer pursuing a sale of the company [after] media reports issued in July/August indicated the company was exploring a sale. Fitch believes the event risk of a leveraged buyout of D&B, solicited or unsolicited, will be an overhang on the credit for the near term." Fitch said it believes that a Private Equity sponsor would have to contribute at least $1B in equity to complete an LBO transaction. While this would constitute a substantial investment, PE firms have sufficient capital to make such a sizable contribution, Fitch said. Fitch believes initial unadjusted gross leverage would be high at 7x. New debt of $4B would be sizable and credit markets continue to be volatile, which would likely be one of the largest challenges in completing an LBO, Fitch said.
News For DNB From The Last 14 Days
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Follow-up: Dun & Bradstreet upgraded to Neutral at JPMorgan JPMorgan upgraded Dun & Bradstreet to Neutral from Underweight after meeting with the company's management citing progress with the introduction of new products. The firm raised its price target for shares to $100 from $77.
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