S&P gives SVP loans B-, CCC

S&P said it assigned its B- issue-level and 3 recovery ratings to SVP Holdings LLC's planned $140 million senior secured first-lien term loan ($140 million) and CCC issue-level and 6 recovery ratings to the $110 million second-lien term loan.

Both new term loans will be issued by Southern Veterinary Partners LLC, which is a subsidiary of SVP Holdings. The 3 recovery rating indicates meaningful (50%-70%; rounded estimate: 60%) recovery in default. The 6 recovery rating indicates negligible (0%-10%; rounded estimate: 0%) recovery in default.

“We view the transaction as consistent with our expectation of an aggressive inorganic growth strategy while still generating positive free cash flow. In our recovery analysis, we think the transaction provides slightly higher recovery to the first-lien tranche primarily due to the greater proportion of second-lien debt,” S&P said in a press release.

The company plans to use the proceeds to fund acquisitions, related fees and expenses, and other corporate purposes.

The outlook is stable.

© 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.