Moody’s applies Ba3 to Acelity notes

Moody's Investors Service said it assigned a Ba3 rating to Acelity LP Inc.'s proposed $400 million first-lien senior secured note offering.

The outlook remains stable.

Proceeds will be used to refinance the $312 million outstanding under the company's term loan E-2, pay fees and expenses and boost cash balances.

Moody's will reassess Acelity's speculative grade liquidity rating of SGL-4 upon closing of the transaction.

The B3 corporate family rating reflects Acelity's very high financial leverage, limited free cash flow and modest interest coverage, the agency said.

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