Moody's assigns B2 to Clinigen

Moody's Investors Service said it assigned a B2 corporate family rating and B2-PD probability of default rating to Triley Midco 2 Ltd. (Clinigen Group plc) in the context of the group's take private by Triton Partners. The agency also gave B2 ratings to the planned £610 million equivalent backed senior secured first lien term loan B euro-denominated and Sterling-denominated tranches and pari passu ranking £75 million backed senior secured first-lien multicurrency revolving credit facility.

“Clinigen has generated positive free cash flow (FCF) historically, after interest and before acquisitions. Moody's forecasts that it will remain the case under private ownership despite the heightened interest burden and ongoing working capital usage to support revenue growth. While recurring capex is around 2% of sales, expansionary capex and license acquisitions can temporarily reduce FCF.

“Nevertheless, Moody's expects Clinigen to generate at least £30 million of FCF annually, translating into FCF/adjusted debt approaching 5%,” Moody’s said in a press release.

The outlook is stable.

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