S&P rates Cooper loan BB+

S&P said it assigned a BB+ issue-level rating to Cooper Cos. Inc.'s $1.425 billion unsecured term loan. The recovery rating is 3, reflecting an expectation for meaningful (50%-70%; rounded estimate: 50%) recovery in the event of default.

The company expects to use proceeds to fund the $1.1 billion acquisition of Paragard from Teva Pharmaceutical Industries Ltd.

The BB+ corporate credit rating and stable outlook on Cooper are not affected by the transaction, and the issue-level ratings of BB+ on the company's other unsecured credit facilities and recovery rating of 3 are also unchanged.

“Although the acquisition modestly enhances Cooper's surgical business segment and improves segment and product diversification, it does not change our assessment of business risk as fair, given the relatively modest revenues generated by Paragard (about $170 million in annual revenues),” the agency said in a news release.

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