Moody's rates Femur Buyer loan B2

Moody's Investors Service said it assigned a B3 corporate family rating and B3-PD probability of default rating to Femur Buyer, Inc., which does business as Orchid Orthopedic Solutions.

Moody's also assigned a B2 rating to the company's proposed senior secured first-lien credit facilities.

The outlook is stable.

The proceeds from the $485 million first-lien term loan, $160 million secured second-lien term loan, along with about $348 million in equity will be used to finance Nordic Capital's acquisition of a majority stake in Femur.

After the transaction, Femur will be about 65% owned by Nordic.

Altor Equity Partners, the current owner of Femur, will retain the remaining 35% stake in the company, Moody's explained.

The ratings reflect Femur's very high financial leverage, moderate scale, sole focus on the orthopedic market and customer concentration, the agency said.

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