14th Nov 2019 17:15
(Alliance News) - Moody's Investors Service on Thursday said the outlook for ConvaTec Group PLC is now stable after the wound dressings maker completed a refinancing of debt.
Moody's assigned a Ba3 corporate family rating and Ba3-PD probability of default rating to ConvaTec following the closing of the company's refinancing.
Last month, ConvaTec said it successfully completed a refinancing of the debt put in place at the time of its initial public offering in October 2016.
The debt outstanding under the arrangement of about USD1.6 billion term debt and an undrawn USD200 million revolving credit facility has been replaced with a committed 5-year bank facility of USD1.5 billion term debt and a USD200 million revolving credit facility, on "more favourable terms overall", the company said.
As such, Moody's said ConvaTec is the top entity in the new banking group and the "outlook is stable" for the company. The rating agency added that ConvaTec's credit profile benefits from its good scale and product diversification across multiple sub-segments within care medical products.
"The stable outlook reflects Moody's expectation that ConvaTec will continue to operate with moderately high financial leverage. However, the company's very good liquidity will enable it to manage through its transformation over the next 12 to 18 months," Moody's said.
Shares in ConvaTec closed marginally lower at 190.00 pence on Thursday in London.
By Arvind Bhunjun; [email protected]
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