Moody’s rates Grifols facilities Ba2

Moody's Investors Service said it assigned a Ba2 rating to the proposed $4,425,000,000 senior secured bank credit facilities to be issued by Grifols World Wide Operations Ltd. and Grifols Worldwide Operations USA, Inc., wholly owned subsidiaries of Grifols SA.

The proposed senior secured bank credit facilities include a $1.3 billion term loan B due 2025, a $2,825,000,000 term loan A due 2023 and a $300 million equivalent revolving credit facility due 2023.

Grifols plans to use the proceeds from the new term loans to refinance existing term loans.

Moody’s said the assignment reflects the following inter-related drivers: (a) the agency estimates that Grifols' leverage, as measured by Moody's-adjusted debt/EBITDA, will remain unchanged at 4.8 times because the refinancing will not change the company's quantum of debt and (b) Moody's expects that the refinancing will extend the company's debt maturity profile and provide some interest expense savings thereby slightly improve its free cash flows

All of Grifols' other ratings remain unchanged, namely the Ba3 corporate family rating, Ba3-PD probability of default rating, B2 rating of the $1 billion senior unsecured notes due 2022 and Ba2 rating of currently outstanding senior secured bank credit facilities, including $700 million term loan A due 2020, $3.25 billion term loan B due 2021, €400 million term loan B due 2021, and $300 million revolver due 2019.

The additional $1.7 billion term loan due 2023 (rated Ba2), arranged to finance the acquisition of Hologic's NAT blood screening business, is not part of the refinancing and it will be fungible (mutually interchangeable) with the new $1.3 billion term loan.

The outlook on all ratings remains stable.

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