Moody's rates Talecris loan B3

Moody's Investors Service said it assigned a B3 rating to Talecris Biotherapeutics, Inc.'s proposed $330 million second-lien term loan due 2014, which has been added as part of a recently restructured transaction. The agency also affirmed Talecris' B2 corporate family and probability-of-default ratings and the B2 rating on its downsized $700 million first-lien term loan due 2013.

The outlook is stable.

The agency said the affirmation of the ratings recognizes some reduction in the company's planned dividend - which Moody's described as "still sizable" at more than $800 million - and assumes that despite an expected initial draw on the slightly upsized $325 million first lien asset-based revolver (not rated), liquidity will remain at previously expected levels.

The ratings are supported by the company's position as the largest "pure play" plasma products manufacturer; its number-three position, in terms of global sales, behind Baxter International Inc. and CSL Ltd.; improving fundamentals in the U.S. plasma protein market and the high barriers to entry in the market.

The agency said Talecris' ratings are adversely affected by the aggressive financial policies of the company, its limited operating history as a standalone company, its high reliance on raw plasma and the early integration of plasma collection with manufacturing. The company is assuming a significant amount of debt in order to finance a large, one-time dividend payment to its equity sponsors and to acquire plasma collection centers from International BioResources, LLC.

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