S&P gives Argon, facilities B+, loan B-

S&P said it assigned a B+ corporate credit rating to Argon Medical Devices Holdings Inc. and assigned a B+ issue-level rating to the company's first-lien credit facility, which consists of $15 million revolving credit facility and $310 million first-lien term loan.

The 3 recovery rating indicates expectations for meaningful (50%-70%; rounded estimate: 60%) recovery in the event of a default.

The outlook is stable.

The agency also assigned a B- issue-level rating to the company's second-lien credit facility, which consists of $110 million second lien term loan. The 6 recovery rating indicates expectations for negligible (0%-10%; rounded estimate: 0%) recovery.

Argon was acquired by Shandong Weigao Group Medical Polymer Co. Ltd., with a minority interest (10%) held by a private equity sponsor. The transaction is being financed with the revolver, first-lien term loan and second-lien term loan.

“We view Argon to be a moderately strategic subsidiary of Weigao, which provides the rating one notch of support above our rating assessment of Argon at b on a stand-alone basis,” S&P said in a news release.

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