RE:Fitch Ratings Interesting
BAX does have liquidity* but they will be focussed on getting their EBITDA leverage down
*Solid Liquidity: Liquidity is supported by cash on hand of $3.0 billion at Mar. 31, 2024, full availability under its $2.5 billion revolving credit facility due 2026, and full availability under its EUR200 million revolving credit facility due 2026.
But they have $2B in debt maturities in the next 12 months.
IPO' ing would raise more cash but they will want working capital for the new entity as well.
I still say that an IPO is doable but may cause them to more hesitant about making any M&A decisions until their rating gets reinstated.
So perhaps PE is the better option for a quicker buyout .
Optionally there is the possibility that PE takes over Vantive and the dialysis, and the PMX/EAA distribution, while an even bigger player takes over Spectral's share of future cash flows. I dunno like a Big Pharma US co. or maybe even a Japanese Co. with a >$1 T yen MC ?
I wonder why big Co.'s pay 20-30 times EBITDA for high margin medical businesses ? Probably because they own calculators and can do a NPV analysis on a future stream of cash flows
So many possibilities .
MM