Moody's confirms Apogent convertible

Moody's Investors Service said it confirmed the Ba2 rating of Apogent Technologies Inc.'s $345 million floating-rate senior convertible contingent notes (Codes) due 2033, which have become the obligations of Fisher Scientific International Inc.

Following this rating action, the outlook is positive. At the same time, Moody's withdrew certain other debt ratings of Apogent.

The acquisition of Apogent by Fisher closed on Aug. 2, resulting in an upgrade of Fisher's senior implied and senior unsecured debt ratings to Ba2 from Ba3 on Aug. 5. On that date, Moody's lowered Apogent's ratings (senior convertible note rating to Ba2 from Ba1) and left the ratings under review for possible further downgrade to examine the position of Apogent's debt in the new capital structure and an evaluation of any support mechanisms related to Apogent's debt.

Apogent's $345 million Codes due 2033 have become the direct obligation of Fisher by way of an exchange offer that aligned the conversion terms of Apogent's convertible debt with Fisher's currently outstanding convertible debt, and made Fisher the obligor through an unconditional guarantee. For this reason, Moody's is confirming the rating of the Apogent notes at Fisher's Ba2 rating for senior unsecured debt.

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