United Technologies Sees Asset Sales Curbing New Stock Needed for Goodrich
United Technologies Corp. (UTX) plans to sell assets to help minimize the amount of stock it needs to offer to pay for the $16.5 billion purchase of Goodrich Corp. (GR), Chief Financial Officer Greg Hayes said.
The maker of Sikorsky helicopters will raise funds on the debt and equity markets about a month before the acquisition closes at midyear, Hayes said today in an interview. He wouldn’t detail any assets to be sold beyond calling them “non-core.”
United Technologies has projected raising about $4 billion of equity, Hayes said. The Hartford, Connecticut-based company will identify the assets to be sold by March 15 and is working with Standard & Poor’s and Moody’s Investors Service to keep its debt rating intact, he said.
“We’re working hard to reduce the amount of equity we’re going to issue,” he said. “As the CFO of the company I would tell you what I really hate would be to lose my credit rating with S&P and Moody’s.”
United Technologies agreed to buy Goodrich in September, adding the world’s biggest maker of aircraft landing gear to an aerospace portfolio that includes Sikorsky, Pratt & Whitney jet engines and Hamilton Sundstrand aviation equipment.
Sikorsky is a “core” asset and isn’t being considered for disposal, Hayes said on a conference call.
United Technologies has an A2 rating and a stable outlook from Moody’s and an A grade with a negative outlook from S&P.
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