Research Update: Perrigo Co. PLC Ratings Affirmed On Term Loan B Add-On To Fund Tender Offer; Outlook Stable

Perrigo Co. PLC launched a $300 million fungible add-on to its term loan B facility to finance a tender offer for $300 million of its $700 million, 3.9% senior unsecured notes due Dec. 15, 2024. We affirmed all of our ratings on the over-the-counter consumer health care products company, including our 'BB' issuer credit rating, 'BB+' rating on the senior secured bank credit facility (including the upsized term loan B facility), and 'BB-' rating on the senior unsecured notes. The recovery rating on the senior secured bank credit facility remains '2', indicating that lenders could expect substantial (70%-90%; rounded estimate revised to 75% from 85%) recovery in the event of a payment default. The recovery rating on the senior unsecured

...- Perrigo Co. PLC launched a $300 million fungible add-on to its term loan B facility to finance a tender offer for $300 million of its $700 million, 3.9% senior unsecured notes due Dec. 15, 2024. - We affirmed all of our ratings on the over-the-counter consumer health care products company, including our '##' issuer credit rating, '##+' rating on the senior secured bank credit facility (including the upsized term loan B facility), and '##-' rating on the senior unsecured notes. - The recovery rating on the senior secured bank credit facility remains '2', indicating that lenders could expect substantial (70%-90%; rounded estimate revised to 75% from 85%) recovery in the event of a payment default. The recovery rating on the senior unsecured notes remains '5', indicating modest (10%-30%; rounded estimate revised to 25% from 20%) recovery. - The stable outlook reflects our confidence that Perrigo will reduce S&P Global Ratings-adjusted leverage below 5x, though likely not until 2024 following...

Research Update