New York, November 25, 2015 -- Moody's Investors Service has downgraded to Ba1 from Baa3 the senior note rating of GAMCO Investors, Inc. (GAMCO). The shelf ratings have also been downgraded by one notch. Additionally, Moody's has assigned a Corporate Family Rating of Ba1. The outlook on all ratings is stable. Moody's notes that on 18 November 2015, GAMCO announced the commencement of its offer to purchase for cash up to $100 million of the outstanding 5.875% Senior Notes due 1 June 2021. The rating actions follow the company's announced corporate restructuring, which included the spin-off of its hedge fund and alternative asset management operations to shareholders in the form of shares in newly created Associated Capital Group, Inc. (ACG) on 30 November 2015. At the close of the transaction, GAMCO will have re-levered its balance sheet to 2.2x Debt / EBITDA (as calculated by Moody's), which is in sharp contrast to the firm's historically low leverage of below 1x. In addition to debt and treasury stock issuance in the amount of $400 million for the benefit of ACG, the restructuring also includes a transfer of cash in the amount of approximately $375 million to ACG.

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