S&P rates Invacare loans B+, note B-, convertible CCC+

Standard & Poor's said it assigned a B corporate credit rating to Invacare Corp., B+ ratings with recovery ratings of 1 to the company's proposed $150 million senior secured revolving credit facility due 2012 and $250 million senior secured term loan due 2013, a B- rating to its proposed $175 million senior unsecured notes due 2015 and a CCC+ rating to the its proposed $125 million senior subordinated convertible notes due 2027.

The outlook is stable.

Proceeds will be used to refinance the company's existing debt and to pay associated premiums, fees and expenses. Following the refinancing, Invacare will have just over $600 million of debt and a lease-adjusted debt-to-EBITDA ratio of around 5.4x.

The agency said the B corporate credit rating reflects Invacare's exposure to Medicare reimbursement reductions, its concentration in wheelchairs, counterparty risk for its accounts receivable, pricing and volume pressures from lower-priced competitors and the company's significant debt leverage.

These concerns are partially mitigated by Invacare's market-leading positions and brand reputation, its customer and geographic diversity and its opportunities to reduce costs, S&P said.

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