Bulletin: LifeScan Global Corp. Ratings Unaffected By Announced Change In Debt Structure

BOSTON (S&P Global Ratings) June 15, 2018--S&P Global Ratings today said that its ratings on U.S.-based blood glucose monitoring product manufacturer LifeScan Global Corp. (B+/Stable/--) are unaffected by the company's announcement of a change in its capital structure. Under the revised transaction structure, the company is issuing a $125 million super-priority revolver ($50 million drawn at close), a $1.475 billion first-lien term loan, and a $275 million second-lien term loan. This reflects a modest shift from the $1.400 billion first-lien term loan and $350 million second-lien term loan LifeScan had previously announced. The amount of the super-priority revolver remains unchanged. We have slightly lowered our rounded recovery estimate for the first-lien term loan to 55% from 60% to reflect the

...BOSTON (S&P Global Ratings) June 15, 2018--S&P Global Ratings today said that its ratings on U.S.-based blood glucose monitoring product manufacturer LifeScan Global Corp. (B+/Stable/--) are unaffected by the company's announcement of a change in its capital structure. Under the revised transaction structure, the company is issuing a $125 million super-priority revolver ($50 million drawn at close), a $1.475 billion first-lien term loan, and a $275 million second-lien term loan. This reflects a modest shift from the $1.400 billion first-lien term loan and $350 million second-lien term loan LifeScan had previously announced. The amount of the super-priority revolver remains unchanged. We have slightly lowered our rounded recovery estimate for the first-lien term loan to 55% from 60% to reflect the increased proportion of first-lien debt in the company's capital structure. We view the revised transaction as leverage neutral and continue to forecast that the company's pro forma debt-to-EBITDA...

Bulletin