S&P rates Colgate Medical facility BB-

Standard & Poor's said it assigned its BB- corporate credit rating to orthopedic manufacturer Orthofix International NV and its BB- senior secured bank loan rating to Colgate Medical Ltd.'s proposed $125 million bank facility.

Colgate Medical is a holding company owned by Orthofix International NV, its parent company.

The outlook is stable.

The proposed debt, cash, and $28 million of equity will be used to purchase BREG Inc., a leading manufacturer of orthopedic bracing and cold therapy products for $150 million. Although the rated debt will be obligations of holding company Colgate Medical, the acquisition will be executed by Orthofix Inc., the U.S. operating company.

Colgate Medical will own both Orthofix Inc. and BREG Inc.

S&P said the speculative-grade ratings are based on the company's niche product lines and highly competitive markets, factors partially offset by its diverse revenue stream and relatively low leverage.

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