Fitch gives BBB to PerkinElmer notes

Fitch Ratings said it assigned a BBB rating to PerkinElmer, Inc.'s senior unsecured notes offering.

The company intends to use the net proceeds to retire its bridge term loan and reduce revolver borrowings initially used to partially fund its Euroimmun acquisition in December 2017.

The outlook is stable. The ratings apply to roughly $2 billion of debt outstanding as of Dec. 31, 2017.

Pro forma for the $1.4 billion acquisition, Fitch said PerkinElmer's leverage increased to 3.6 times at Dec. 31, 2017 from 2.6 times before the acquisition. The company has generally maintained gross debt to EBITDA between 2 times and 2.5 times, and the agency expects the company to reduce leverage to this range by the end of 2019, due to a combination of EBITDA growth and $475 million of debt repayment.

“PerkinElmer's conservatively managed capital structure allows good financial flexibility for the company to participate in life science industry consolidation while maintaining the BBB rating. However, Fitch expects that PerkinElmer will focus on relatively smaller acquisition targets in the near term as the company integrates Euroimmun,” the agency said in a news release.

© 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.