Moody's assigns ANI B2

Moody's Investors Service said it assigned ratings to ANI Pharmaceuticals, Inc., including a B2 corporate family rating, a B2-PD probability of default rating and a B2 rating to the senior secured credit facilities. Moody's also assigned an SGL-1 speculative grade liquidity rating.

“ANI's B2 corporate family rating reflects its small size compared with generic pharmaceutical peers, with pro forma revenue of less than $300 million. Further, all of ANI's revenues are generated in the US. ANI's debt/EBITDA is moderate, increasing to around 3.8x for the acquisitions of Novitium and the Derm Assets,” Moody’s said in a press release. The facilities include a $40 million revolver, expected to be undrawn at close.

Proceeds from the $300 million term loan, together with equity financing, will be used to finance two acquisitions and refinance ANI's debt. ANI will acquire Novitium Pharmaceuticals and a portfolio of four branded dermatology products from Novartis AG's Sandoz division The total purchase price for Novitium is $163.5 million plus earn-out payments worth up to $46.5 million.

The outlook is stable. “ANI's stable outlook reflects Moody's view that the company will be able to sustainably grow revenue through a combination of new product launches and product acquisitions,” the agency said.

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