Moody’s rates Acelity revolver Ba3, notes Caa1, Caa2

Moody's Investors Service said it assigned ratings of Ba3 to Acelity LP Inc.'s new extended revolver, Caa1 to its new second-lien notes and Caa2 to its new third-lien notes.

The agency affirmed all other ratings including the B3 corporate family rating, B3-PD probability of default rating, Ba3 rating on the first-lien senior secured credit facilities, Caa2 rating on the senior unsecured notes and the SGL-2 speculative grade liquidity rating.

Proceeds will be used to refinance existing debt and fees and expenses.

Collectively, Moody’s said, the $1.75 billion senior secured second-lien notes and $450 million senior secured third-lien notes will help Acelity circumvent the triggering of a springing maturity with its first-lien term loan.

Moreover, these issuances in concert with the $171 million senior secured revolving credit facility extension will alleviate virtually all of Acelity's near-term refinancing risk and create greater runway for augmenting operating performance.

The transaction, which includes $100 million of fresh sponsor equity, will be leverage-neutral.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.