Moody’s rates Hologic facility Ba1

Moody's Investors Service said it rated Hologic Inc.'s new $2.5 billion five-year senior secured credit agreement Ba1.

The current Ba3 corporate family rating, Ba3-PD probability of default rating and unsecured notes rated B1 remain unchanged.

The agency withdrew the ratings on the previous bank debt.

The outlook remains stable.

The new senior credit facility consists of a $1.5 billion senior term loan and a $1 billion revolving credit facility.

Proceeds were used to repay the company's $1.7 billion outstanding term loans in a leverage-neutral transaction. The refinancing has extended the company's bank debt maturity profile and reduced interest expense modestly. The increase in revolver size to $1 billion from $300 million also enhances Hologic's already very good liquidity as indicated by its SGL-1 speculative grade liquidity rating.

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