Moody's assigns Recipharm B2

Moody's Investors Service said it assigned a B2 corporate family rating and B2-PD probability of default rating to Roar BidCo AB, the top entity of Recipharm AB’s restricted group. Concurrently, Moody's assigned a B1 instrument rating to both the €1.115 million guaranteed senior secured first-lien term loan B and the SEK 3 billion guaranteed senior secured revolving credit facility. A stable outlook has been assigned.

The B2 reflects Recipharm’s above-average size, its broad product offering, low customer churn rates and good technical abilities among other factors, Moody’s said.

The debt proceeds, together with the proceeds of the second-lien £228 million term loan cash equity contribution of SEK 14.4 billion and rolled-over equity of SEK 6 billion, will be used to finance the acquisition of Recipharm for SEK 24.9 billion and refinance debt.

The outlook reflects the agency’s forecast that Moody's adjusted gross leverage will fall below 6.5x by 2022 and that Recipharm's operating performance will continue to be strong over the next 12 to 18 months, Moody’s said.

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