Shares Of CA Drop On Debt Review
Computer Associates International
As a result of Moody's review, the enterprise software vendor is delaying until Feb. 8 the sale of $1 billion in senior notes, a refinancing that was intended to restructure its debt at a lower interest rate, Islandia, N.Y.-based CA said in a statement.
"The company believes its strong cash flow, ongoing debt reduction and competitive successes support its current debt ratings," CA said.
In a statement, Moody's said, "CA's cash flow generation will remain weakened from historic levels for at least the near term and that competitive rivalry across the company's rapidly evolving software markets remains formidable amidst a weak corporate buying environment for enterprise software."
CA affirmed its guidance of $770 million in revenue and an operations loss of 4 cents to 5 cents per share for its fourth fiscal quarter ending March 31.
Shares of CA traded down $4.42 to $26.95 Wednesday morning.