S&P rates Femur Buyer loan B

S&P said it assigned a B issuer credit rating to Femur Buyer Inc., which operates as Orchid Orthopedic Solutions.

The agency also said it assigned a B rating and 3 recovery rating to the company's first-lien debt. The 3 recovery indicates 50% to 70% expected default recovery.

S&P said it does not rate the second-lien debt.

The stable outlook reflects an expectation that the company will grow faster than the orthopedic implants outsourced manufacturing industry average for the next 12- to 18-months, the agency said.

The company also is expected to generate moderate free cash flow between $10 million and $15 million, S&P said, and sustain leverage higher than 5x under financial sponsor ownership.

The ratings reflect the company's niche orthopedic focus within the highly fragmented and somewhat commodity-like medical device contract manufacturing industry, the agency said.

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