Moody’s rates Exactech, facilities B2

Moody's Investors Service said it assigned a B2 corporate family rating and a B2-PD probability of default rating to Osteon Merger Sub, Inc. and a B2 (LGD 3) rating to its first-lien credit facilities.

The outlook is stable.

Proceeds from the new $235 million first-lien term loan will be used to partially fund the acquisition of Exactech, Inc. – valued at about $750 million – by TPG Capital, LP and management. Immediately following the acquisition, Osteon will be merged into Exactech, and Exactech will be the surviving entity. At that time, Moody's will move all ratings to Exactech from Osteon.

Moody’s said the B2 rating reflects the company’s limited scale in the global orthopedic device industry and narrow business focus as a few key product lines account for the substantial majority of sales.

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