S&P rates Medline, loans B+

S&P said it assigned B+ ratings to Mozart Borrower LP (Medline Industries) and its expected revolver and term loans. The recovery rating is 3.

The company plans to sell $16 billion in debt, including a $1 billion revolver as part of a leveraged buyout by the Blackstone Group, the Carlyle Group, and Hellman & Friedman LLC.

“The rating reflects Medline's scale and strong competitive position in medical distribution. These attributes are offset by its high leverage and a financial policy that we expect will remain aggressive under financial sponsor ownership. Medline's scale and strong position in a highly consolidated medical distribution business in the U.S. provides it with significant competitive advantages,” S&P said in a press release.

The outlook is stable.

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