S&P assigns Edwards loan B+

Standard & Poor's said it affirmed the B+ long-term corporate credit rating on Edwards Group Ltd., and assigned a B+ rating to the proposed $280 million new first-lien term loan due in May 2016 and issued by subsidiary Edwards (Cayman Islands II) Ltd.

The agency also said it affirmed the B+ issue rating on the existing $430 million first-lien term loan, issued by Edwards (Cayman Islands II) Ltd. The recovery rating on both first-lien loans is 3, indicating 50% to 70% expected recovery in a default.

The agency also said it affirmed the BB rating on the $100 million super-senior revolving credit facility due in May 2013 and issued by Edwards (Cayman Islands II) Ltd. The recovery rating is 1, indicating 90% to 100% expected recovery in a default.

The outlook is stable.

Upon completion of the refinancing, the agency said it expects to withdraw the B- rating on the $185 million second-lien payment-in-kind toggle loan due 2014, which will be repaid with the proceeds from the new term loan.

The ratings reflect a view that the proposed refinancing, amendment of its credit agreement and the company's proposed dividend payment are still compatible with the assessment of Edwards' financial risk profile, which is considered aggressive, S&P said.

The agency said it expects the dividend of up to $150 million to reduce Edwards' cash on hand, the agency said.

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