S&P rates Beaver-Visitec loans B, CCC+

S&P said it assigned a B corporate credit rating to Beaver-Visitec International Holdings Inc.

The agency also said it assigned a B rating to the company's proposed $30 million revolving credit facility and $170 million term loan with a recovery rating of 3, indicating 50% to 70% expected default recovery.

The agency also said it assigned a CCC+ rating to the company's proposed $80 million second-lien term loan with a recovery rating of 6, indicating 0 to 10% expected default recovery.

The outlook is stable.

Beaver Visitec is being acquired by TPG Capital Partners in a leveraging transaction, S&P explained.

As a leading manufacturer of single-use surgical tools used in eye surgeries, the company’s business risk profile is considered weak, reflecting its small scale, narrow therapeutic focus with about 85% of revenues generated by products used in cataract procedures and the presence of competitors with substantially greater size and financial strength, the agency said.

These characteristics are partially offset by its good product, customer and geographic diversity, S&P said, and a degree of product differentiation and manufacturing expertise that supports brand loyalty and leads to some pricing flexibility.

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