S&P gives Ortho-Clinical facility B-

S&P said it assigned its B- issue-level rating to the proposed senior secured credit facility co-issued by Ortho-Clinical Diagnostics SA and Ortho-Clinical Diagnostics Inc.

The credit facility includes a $2.325 billion senior secured term loan maturing in 2025 and a $350 million revolving credit facility maturing in 2023.

The recovery rating is 3, reflecting an expectation for meaningful (50%-70%; rounded estimate: 65%) recovery in the event of payment default.

Proceeds will be used to refinance Ortho-Clinical's existing term loan and revolver.

The CCC issue-level rating on the company's senior unsecured debt is unchanged. The recovery rating remains 6, reflecting an expectation for negligible (0%-10%, rounded estimate: 5%) recovery.

S&P said the B- corporate credit rating on parent Ortho-Clinical Diagnostics Bermuda Co. Ltd. continues to reflect an expectation that the company's leverage will improve to 7.7 times in 2018 from 8 times in 2017 and discretionary cash flow generation will improve to a $60 million in 2018 from a $70 million deficit in 2017.

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