Fitch: Auris unchanged after add-on

Fitch Ratings said Auris Luxemburg III Sarl's expected senior secured rating of B+ is unchanged following the issuer's decision to undertake a new €95 million add-on to the issuer's term loan B.

The new debt will be used to finance expenses related to the merger between Sivantos Pte Ltd. and Widex AS, as well as a bolt-on acquisition that closed in December 2018, Fitch said.

Auris is increasing the committed amount under its revolving credit facility by €50 million to €250 million.

The ratings of Lux Midco, which is the holding entity of the group resulting from the merger of Sivantos and Widex, including the long-term issuer default rating of B with stable outlook, are unaffected.

Auris acts as a financing vehicle for the group, Fitch explained.

The proceeds will be used to replace the funding used to acquire Clearwater Clinical and to cover additional transaction fees arising from the merger between Sivantos and Widex, the agency said.

The incremental debt in the capital structure results in slightly lower expected recoveries for the senior secured creditors, S&P said.

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