Moody's gives B2 to MI OpCo loans

Moody's Investors Service said it assigned a B2 corporate family rating and a B2-PD probability of default rating to MI OpCo Holdings Inc. (MedImpact).

Moody's also assigned B2 ratings to the company's proposed first-lien senior secured credit facilities, consisting of a $50 million to $75 million revolver expiring in 2028, a $550 million term loan due in 2029 and a $650 million delayed-draw term loan due in 2029.

The outlook is stable.

Moody’s said MedImpact's B2 CFR rating reflects its position as the fifth largest pharmacy benefit manager in the United States. The company is distinguished by its independent model, not affiliated with a health insurer or retailer. The rating also incorporates an elevated business risk as regulatory and/or legislative changes could materially erode MedImapct's future earnings. The rating also reflects governance risks related to a highly concentrated ownership structure.

These risks are tempered by a track record of moderate financial leverage and positive free cash flow, the agency added in a news release.

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