Moody’s reviews Catalent Pharma

Moody's Investors Service said it placed Catalent Pharma Solutions, Inc.'s corporate family rating of B2, probability of default rating of B2-PD and senior unsecured term loan rating of Caa1 under review for possible upgrade after the company announced its expected pricing of its initial public offering and intended use of the proceeds for debt repayment.

At the same time, the agency placed the Ba3 rating on the senior secured credit facilities under review for downgrade and affirmed the ratings on the senior unsecured notes and senior subordinated.

The speculative grade liquidity rating of SGL-2 was affirmed.

Based on the announced terms contemplated in the latest S-1 filing, Catalent expects to receive about $800 million proceeds from the IPO, the majority of which will be used to pay down debt.

"The potential debt paydown from the IPO would be significant and would reduce Catalent's leverage to below 5.0x debt/EBITDA from current 7.0x. This could result in a one notch upgrade of Catalent's corporate family rating to B1," Moody's senior analyst and vice president John Zhao said in a news release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.