Moody’s ups Greatbatch loans to Ba2

Moody’s Investors Service said it raised Greatbatch Ltd.’s senior secured debt facilities, comprised of a revolver and a term loan A, to Ba2 from Ba3.

The upgrade follows Greatbatch's sale of $500 million of unrated 2.125% senior unsecured convertible notes due in 2028, Moody’s said. Greatbatch will use the proceeds to pay down the $350 million term loan B, with $347 million outstanding at Sept. 30. There is no action on the rating on the term loan B and the rating will be withdrawn at the transaction's close. Moody's expects any remaining proceeds will be used to pay down the revolver.

“The upgrade of the ratings on the senior secured first-lien revolving credit facility and senior secured first-lien term loan A, reflect the relatively large proportion of unsecured debt now in the capital structure following the convertible note issuance and term loan B paydown,” the agency said in a press release.

Moody’s also affirmed Greatbatch’s Ba3 corporate ratings and left its speculative grade liquidity rating of SGL-1 unchanged.

The outlook is stable.

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