Moody’s assigns Southern Veterinary B3, loan B2

Moody’s Investors Service said it assigned a B3 corporate family rating and B3-PD probability of default rating to Southern Veterinary Partners, LLC.

Moody’s also assigned B2 ratings to the company’s proposed first-lien credit facilities, consisting of a $30 million revolver expiring 2025, a $435 million term loan due 2027 and a $60 million delayed-draw term loan due 2027. Moody’s assigned a Caa2 rating to the $140 million second-lien term loan.

“Southern Veterinary Partners, LLC’s B3 corporate family rating (CFR) broadly reflects its very high financial leverage (Moody’ s-adjusted debt-to-EBITDA of 8.7 times on a pro forma basis), which Moody’s expects to persist as the company continues to use debt to fund acquisitions,” the agency said in a press release.

Term loan proceeds will be used to refinance debt and finance future acquisitions.

The outlook is stable.

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