Moody’s: ABB/Con-Cise unaffected by loan add-on

Moody's Investors Service said that ABB/Con-Cise Optical Group LLC's (borrowing entity for ABB Optical Group) ratings, including the B3 corporate family rating and the B1 rating on its senior secured term loan, are unchanged following news that the company will amend its senior secured credit facility and increase the outstanding term loan B by $48 million.

Proceeds from the add-on to acquire Diversified Ophthalmics.

The outlook is stable.

That said, Moody's said it views this acquisition as credit negative as ABB Optical Group is in the midst of deleveraging following a dividend recap in June. The agency believes that the company's debt/EBITDA will rise from about 7.2 times to about 7.3 times for the 12 months ended June 30, 2016 (pro-forma for Diversified's reported earnings).

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