Moody’s rates WW Medical B3; facilities B2, Caa2

Moody's Investors Service said it assigned a B3 corporate family rating and B3-PD probability of default rating to WW Medical and Healthcare Corp.

The entity will be merged into Argon Medical Devices Holdings, Inc. at closing.

In addition, the agency assigned a B2 rating to Argon's senior secured first-lien credit facilities, including its $15 million revolver and $310 million term loan. it also assigned a Caa2 rating to Argon's $110 million secured second-lien term loan.

The outlook is stable.

Proceeds will be used along with sponsor equity to fund the $850 million leveraged buyout of Argon by Shandong Weigao Group Medical Polymer Co. Ltd. and an undisclosed private equity firm.

Moody’s said the B3 corporate family rating is constrained by Argon's moderate scale relative to many other larger competitors in the medical device space. The ratings also reflect the agency’s expectation that Argon's financial leverage will remain high, particularly given the company's size.

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