Moody’s gives EyeSouth, loans B3

Moody’s Investors Service said it assigned a B3 corporate family rating and B3-PD probability of default rating to SCP Eye Care Services, LLC (EyeSouth). Moody’s also assigned a B3 rating to its proposed revolving credit facility and first-lien term loans.

“The B3 CFR reflects EyeSouth’s small scale relative to peers and its geographic concentration, with around 50% of revenue generated in Georgia. Additionally, the rating reflects EyeSouth’s high pro forma adjusted leverage, with debt/EBITDA exceeding seven times,” Moody’s said in a press release.

Proceeds will be used to refinance EyeSouth’s debt, finance its near-term acquisition pipeline and pay for fees and expenses associated with the transaction. The delayed draw first-lien term loan can be used to fund acquisitions and future growth over the next 18 months.

The outlook is stable, mirroring the forecast EyeSouth will continue generating positive same-store sales growth and will effectively manage its acquisition strategy, Moody’s said.

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