S&P rates Biomet notes B-

Standard & Poor's said it assigned a B- rating and 6 recovery rating to Biomet Inc.'s proposed $550 million senior unsecured notes maturing 2020.

The recovery rating reflects an expectation for 0 to 10% expected recovery in a default.

The notes will rank equally with the company's existing and future senior unsecured indebtedness.

The proceeds will be used to fund the purchase of the company's senior toggle notes in a tender offer.

The offering will not meaningfully alter Biomet's outstanding debt or credit metrics, which include pro forma total adjusted debt-to-EBITDA of about 6x as of May 31, S&P said.

The agency said it expects debt leverage to remain consistent with the company's highly leveraged financial risk profile.

The ratings reflect its satisfactory business risk profile and highly leveraged financial risk profile, S&P said.

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