Moody’s rates WD Wolverine loans B2, Caa2

Moody's Investors Service said it assigned a B3 corporate family rating and B3-PD probability of default rating to WD Wolverine Holdings, LLC.

This issuer is the borrowing entity for WellDyneRx.

At the same time, the agency assigned a B2 rating to company's senior secured first-lien term loan and bank revolving credit facility, and a Caa2 to its second-lien term loan.

The outlook on all ratings is stable.

Proceeds from this offering will be used to partially finance Carlyle Group's acquisition of WellDyneRx from WellDyne Holding Corp.

"WD Wolverine's B3 rating reflects its very high leverage, and its position as a very small, relatively new player in a PBM sector dominated by three large players," Moody's senior credit officer Diana Lee said in a news release.

"But, we expect new client wins and new vendor contracts to help it deleverage and achieve positive free cash flow."

Initial debt/EBITDA will be about 7.1 times (including new client wins and cost savings that are effective during the second half of 2016).

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