Fitch rates Beckman Coulter convertible BBB

Fitch Ratings said it assigned a BBB rating to Beckman Coulter Inc.'s $525 million 2.5% convertible senior notes due 2036.

The outlook is stable.

Proceeds of the notes will be used to pay down $240 million of senior notes due 2008, a $185 million bridge facility and revolver borrowings. In conjunction with the offering, Beckman Coulter will purchase $100 million of common shares.

The agency said it favorably views Beckman Coulter's efforts to reduce interest expense while extending its debt maturity schedule and said that, given the increase in debt load and compressed free cash flow generation in the intermediate term, any reduction of leverage will be driven by operational improvement.

Beckman Coulter's rating reflects the negative impact to free cash flow generation through the intermediate term from a significant cash outlay dedicated to capitalizing customer equipment on the balance sheet resulting from the leasing policy shift leases in the United States, Fitch said.

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