S&P assigns Biomet B+, loans BB-, B+, notes B-

Standard & Poor's said it assigned its B+ corporate credit rating to Biomet Inc.

The outlook is stable.

At the same time, S&P said it assigned its bank loan and recovery ratings to Biomet's proposed financing, consisting of a $350 million asset-backed revolving credit facility due June 2013, a $400 million secured cash flow revolving credit facility due June 2013 and a $3.6 billion secured term loan B due December 2014.

The $350 million credit facility is rated BB-, with a recovery rating of 1, indicating high expectation of full recovery in the event of a payment default, the agency said, noting that the $400 million credit facility and the term loan B are rated B+, with a recovery rating of 3.

In addition, the agency said it assigned B- ratings to the company's proposed $775 million senior notes, $775 million senior payment-in-kind toggle notes and $1.015 billion senior subordinated notes.

According to S&P, the ratings on Biomet reflect a satisfactory business risk profile that is largely offset by high debt leverage, debt to EBITDA will be about 8x as a result of a sponsor buyout.

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