TEXT - S&P comments on Biomet Inc
Dec 12 - Standard & Poor's Ratings Services said today that its ratings on Warsaw, Ind.-based medical products manufacturer Biomet Inc. are not affected by the company's intention to add on $250 million of debt to its existing extended term loan due July 2017. The company will use proceeds from the add-on to retire a like amount of the company's term loan facility due March 2015. The amounts of senior secured and total debt will be essentially unchanged, thus the transaction does not affect our ratings. The ratings on Biomet reflect the company's "satisfactory" business risk profile and "highly leveraged" financial risk profile, according to our criteria. Biomet's satisfactory business risk profile reflects pricing pressure and the company's somewhat narrow focus in the orthopedic industry, in addition to the relatively stable nature of its industry, Biomet's relatively full orthopedic product offerings, and favorable long-term volume trends. The financial risk profile and corporate credit rating reflect our expectations for minimal debt reduction, funds from operations (FFO) to total debt between 5% and 10%, and debt to EBITDA to remain more than 5x.
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