Moody's upgrades Kyphon

Moody's Investors Service said it upgraded Kyphon Inc.'s probability-of-default rating to B1from B2 and $300 million revolving credit facility to Ba1 (LGD2, 15%) from B1 (LGD3, 34%) and affirmed the B1 corporate family rating and SGL-1 speculative grade liquidity rating following the issuance of $400 million convertible senior unsecured notes (not rated by Moody's).

The company's loss-given-default assessment, however, was changed to LGD4 (50%) from LGD3 (35%).

The outlook is stable.

Kyphon will use the proceeds from the notes and borrowings under its revolving credit facility to pay down its $425 million senior secured term loan.

The agency said that under the new capital structure, the senior secured revolver benefits from the increased support provided by the newly issued convertible note.

© 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.