Moody’s gives B3 to Envigo facilities

Moody's Investors Service said it assigned a B3 rating to Envigo International Holdings, Inc.'s proposed senior secured credit facilities.

The ratings on this proposed credit facilities are not under review.

All of Envigo Laboratories Inc.'s existing ratings remain under review for upgrade, including the Caa1 corporate family rating and Caa1-PD probability of default rating.

The proposed credit facilities consist of a $300 million six-year senior secured term loan B and a $50 million five-year senior secured revolving credit facility.

The issuance of the credit facilities is contingent upon the completion of Envigo's announced merger with publicly traded, Avista Healthcare Public Acquisition Corp.

Cash on hand, a portion of the Avista cash investment, and proceeds from the new credit facility will be used to refinance all of Envigo's existing debt.

Moody's said it placed Envigo's ratings under review for upgrade on Aug. 24 following the company's announcement that it entered into a definitive merger agreement with Avista.

“Moody's anticipates that Envigo's Corporate Family Rating will be upgraded by one notch to B3 following the transaction as a result of a material decrease in financial leverage. Management expects the transaction to close in the first quarter of 2018,” the agency said in a news release.

“Upon transaction close, Moody's expects to withdraw all ratings at Envigo Laboratories Inc. and assign a CFR and PDR to Envigo International Holdings, Inc.”

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