...+ Global manufacturer of durable medical equipment (DME) Medical Depot Holdings Inc. (also known as Drive DeVilbiss Healthcare) is being acquired by private equity sponsor Clayton, Dubilier & Rice. The company's capital structure will consist of a $417 million senior secured first-lien term loan, a $162 million second-lien term loan, and a $100 million senior secured revolver, pro forma for a near-term tuck-in acquisition. We estimate adjusted debt leverage is about 9.1x for 2016 and 7.3x for 2017. + We are assigning a 'B' corporate credit rating to Medical Depot Holdings Inc. The outlook is stable. + At the same time, we are assigning a 'B' issue-level rating and a '3' recovery rating to Medical Depot's $417 million first-lien term loan due in 2023 and $100 million senior secured revolver, and a '###+' issue¡level rating and a '6' recovery rating to its $162 million second-lien term loan due in 2024. + The stable rating outlook reflects our expectation that, despite the pressures from...
