S&P rates Teleflex notes BB-, ups convertibles

Standard & Poor's said that it assigned a preliminary BB- rating and 5 recovery rating to Teleflex Inc.'s $250 million of senior subordinated notes and raised the debt rating on the company's $400 million of senior subordinated convertible notes to BB- with a 5 recovery rating from a B+ debt rating with a 6 recovery rating.

The improved recovery prospects for the senior unsecured class of debt reflect a net reduction in secured debt, the agency said.

Teleflex plans to repay $125 million of its secured term loan with proceeds from the $250 million issue. As a result, there is a modest increase in collateral available to unsecured lenders.

The ratings reflect the expectation that the company's financial risk profile will gradually benefit from EBITDA growth tied to its diversified portfolio of disposable medical products and debt repayment and the company's fair business risk profile, the agency said.

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