S&P: WCI Communities Inc. Ratings Placed On CreditWatch Positive Following Announcement Of Acquisition By Lennar Corp.
"The CreditWatch listing follows WCI's announcement that Lennar has agreed to acquire all of the company's outstanding common stock in a cash and stock transaction valued at $23.50 per share," said S&P Global credit analyst Thomas O'Toole. The transaction values WCI at approximately $643 million in equity or an enterprise value of $809 million. The company expects to complete the transaction in December 2016 or January 2017.
We plan to resolve the CreditWatch placement following the close of the transaction, which is subject to customary closing conditions and regulatory approval. Assuming the transaction closes as planned, we would subsequently raise our ratings on WCI to equalize them with our ratings on Lennar before withdrawing our corporate credit rating on WCI.