Moody's ups Greatbatch, rates loans Ba3

Moody's Investors Service said it upgraded Greatbatch Ltd.'s corporate family rating to Ba3 from B1, its probability of default rating to Ba3-PD from B2-PD and assigned Ba3 ratings on its new senior secured debt facilities, consisting of a revolver, a term loan A and a term loan B. The company's speculative grade liquidity rating was upgraded to SGL-1 from SGL-2.

The upgrade coincides with the company's announcement of complete refinancing of its debt, the agency said. As part of the refinancing, Greatbatch will expand its revolver to $400 million and replace the term loans with new a $250 million term loan A and a new $350 million term loan B. The company's upsized revolver and new term loan A will mature in 2026 and its new term loan B is due 2028.

“The upgrade of CFR reflects the company's resilience through the coronavirus pandemic and consistent reduction of net debt. Moody's estimates that the company's debt/EBITDA was about 3.6 times at the end of the second quarter of 2021 (before refinancing) and will remain unchanged after the refinancing transaction. The upgrade of SGL reflects improved liquidity due to an increase in revolver size and significant extension of debt maturities (the company's outstanding revolver and term loan debts were due in 2022),” Moody’s said in a press release.

The outlook is stable.

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