...October 30, 2020 BOSTON (S&P Global Ratings) Oct. 30, 2020--S&P Global Ratings today said that Teleflex Inc.'s (##+/Stable/--) proposed acquisition of Z-Medica for an upfront cash payment of $500 million and up to $25 million of additional payments upon the achievement of certain milestones will temporarily increase leverage. The company plans to fund the acquisition through borrowings under its revolving credit facility at closing and may opportunistically seek to raise long-term debt at a later stage. We believe that a combination of pandemic-related headwinds and the debt increase stemming from the Z-Medica acquisition will likely increase the leverage to about 3.6x-3.8x in 2020. At the same time, we project leverage will return to below 3.5x in 2021, after medical procedure volumes normalize. Our ratings and outlook on Teleflex are unchanged. We consider the proposed transaction consistent with Teleflex's strategy of acquiring innovative technologies intended to enhance its growth in...
