S&P Global Ratings placed its ratings on homebuilder AV Homes Inc., including the B- corporate credit rating and B- issue-level ratings on the company's senior unsecured debt, on CreditWatch with positive implications.
AV Homes and Taylor Morrison signed an agreement under which Taylor Morrison will purchase all outstanding shares of AV Homes at $21.50 per share in a cash-and-stock deal valued at roughly $963 million.
According to a note, the CreditWatch with positive implications reflects the rating agency's expectation for AV Homes' debt to be fully settled and for the entity to cease to exist when the merger finalizes.
S&P intends to withdraw the rating when the deal closes later in the year.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found here.
