Moody's rates Eagle notes Caa1

Moody's Investors Service said it assigned a Caa1 (LGD 6) rating to the proposed $900 million senior unsecured notes issued by Eagle Holding Co., II, LLC, a parent company of Jaguar Holding Co. II and Pharmaceutical Product Development, LLC.

Moody's also said it affirmed the B2 corporate family rating, B2-PD probability of default rating and the Caa1 rating on the existing unsecured notes.

The agency also said it affirmed Jaguar Holding Co.'s Ba3 rating on the secured bank credit facilities and upgraded the unsecured notes to B3 from Caa1.

The outlook is stable.

The proceeds will be used to make a distribution to shareholders and fund related fees and expenses, Moody's said.

The transaction is credit negative because it will increase financial leverage and cash interest costs, the agency said.

The company's adjusted debt-to-EBITDA ratio will increase to about 7.7x, from about 6.6x at the end of 2018, Moody's said.

The ratings reflect the company's very high financial leverage and aggressive financial policies, the agency said.

The ratings also consider risks inherent in the CRO industry, which is highly competitive, with a high reliance on the pharmaceutical industry, Moody's said.

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