ConvaTec Healthcare B S.a.r.l. is issuing a new credit facility that will consist of approximately $1.65 million term loans denominated in euro and U.S. dollars, and a $200 million revolving credit facility. The company will use proceeds to refinance its existing term loan B and its euro-denominated $340 million senior secured notes in a transaction that is leverage neutral. We have assigned a 'B+' issue-level rating to the new credit facility and a recovery rating of '3'. We expect debt leverage of about 13x for 2015, including the company's $900 million holdco payment-in-kind (PIK) notes and about $2.8 billion of outstanding preferred equity certificates (inclusive of accumulated interest) in debt. We are affirming the 'B+' corporate credit rating. Our stable
