Moody's rates the debt Sterigenics will use to buy Nordion (NDZ +0.1%) B2 with a Loss Given Default (LGD) 3 score, which reflects Moody's opinion about the expected loss given default on fixed income obligations expressed as a percent of principal and accrued interest at the resolution of default. LGD3's projected loss range is >= 30% and < 50%. The rating outlook is negative.
The FTC terminates its waiting period and the Canadian Competition Bureau issues a no-action letter regarding Sterigenics' proposed acquisition of Nordion (NDZ). The two actions satisfy closing conditions of the merger. The transaction remains subject to certain other closing conditions including approval under the Investment Canada Act. It is expected to close in 2H 2014.
At least 2/3 of Nordion (NDZ +0.1%) shareholders approve the special resolution authorizing the company's acquisition by Sterigenics for $13/share. A hearing on the final order before the Ontario Superior Court of Justice will be held on June 11.
The transaction is contingent on NDZ having a cash balance of $300M at closing. At present, the company has $344M of cash and equivalents. The deal is expected to close in 2H 2014.
Citing insufficient shareholder support, Sterigenics increases its cash offer for Nodion (NDZ +7.5%) from $12.25 to $13.00 in order to secure the minimum 2/3 shareholder approval to OK the deal. The increase trumps a competing $12.50 offer received by Nordion on May 30 from an undisclosed third party. The revised offer values NDZ at $805M.