Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers O > Headlines for Owens & Minor Inc. > News item |
Moody’s ups, rates Owens & Minor notes B2
Moody’s Investors Service said it assigned a B2 rating to Owens & Minor, Inc.’s planned $500 million of senior unsecured notes due 2029.
Concurrently, Moody’s said it upgraded Owens & Minor’s senior secured ratings to Ba2 from B, mirroring the protective layer the unsecured notes will provide.
There are no changes to Owens & Minor other ratings, including the B1 corporate family rating, B1-PD probability of default rating, and SGL-1 speculative grade liquidity rating.
Proceeds will be primarily used to repay borrowings under the revolving credit facility, refinancing the term loan B, and paying related fees and expenses. The company is refinancing its $400 million revolving credit facility with a new $300 million facility in conjunction with the notes offering. It is also upsizing its A/R securitization facility to $450 million from $325 million, along with resetting the maturity to three years, the agency said.
“Moody’s views the transaction as a credit positive as it will improve liquidity and lower interest costs while extending Owens & Minor’s debt maturity profile. The proposed transaction will have no impact on financial leverage, which Moody’s estimates at 4.1x for the last twelve months to Dec.31, 2020,” the agency said in a press release.
The outlook remains positive.
© 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.