Vyaire Medical Inc. Assigned 'B-' Rating, Outlook Stable; Debt Ratings Assigned

Vyaire Medical Inc., a Mettawa, Ill.-based manufacturer and distributor of respiratory equipment and supplies, is recapitalizing following the acquisition by private equity company Apax Partners of the remaining 49.9% equity interest in Vyaire owned by Becton Dickinson&Co. The new capital structure will include a US$125 million revolver (undrawn at closing, and which steps down to $85 million after one year), a US$360 million first-lien term loan, and a €75 million second-lien term loan. We expect adjusted debt leverage to be about 7.8x for 2018, and improve to about 7x for 2019. We are assigning a 'B-' corporate credit rating to the company. The outlook is stable. We are also assigning a 'B-' issue-level rating and '3' recovery rating

...+ Vyaire Medical Inc., a Mettawa, Ill.-based manufacturer and distributor of respiratory equipment and supplies, is recapitalizing following the acquisition by private equity company Apax Partners of the remaining 49.9% equity interest in Vyaire owned by Becton Dickinson & Co. + The new capital structure will include a US$125 million revolver (undrawn at closing, and which steps down to $85 million after one year), a US$360 million first-lien term loan, and a 75 million second-lien term loan. We expect adjusted debt leverage to be about 7.8x for 2018, and improve to about 7x for 2019. + We are assigning a 'B-' corporate credit rating to the company. The outlook is stable. + We are also assigning a 'B-' issue-level rating and '3' recovery rating to the first-lien debt. We are assigning a '###' issue-level rating and '6' recovery rating to the second-lien debt. + The stable rating outlook reflects our base-case forecast for modest organic revenue growth and EBITDA margin expansion, and for...

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