Moody's lifts Horizon Pharma USA

Moody's Investors Service said it upgraded the ratings of Horizon Pharma USA, Inc., a subsidiary of Horizon Pharma plc.

The upgrades conclude a review that began March 5, Moody's said.

The agency said it upgraded the company's corporate family rating to Ba3 from B2, probability of default rating to Ba3-PD from B2-PD, senior secured rating to Ba1 from Ba2 and senior unsecured rating to B1 from B3.

Moody's also said it assigned a Ba1 rating to the company's new $200 million revolving credit facility.

The agency also affirmed the SGL-1 speculative grade liquidity rating.

The upgrades reflect significant debt repayment with proceeds from the recent equity offering, Moody's said.

Horizon raised about $345 million of equity and, together with cash on hand, is repaying about $550 million of debt, the agency explained.

These transactions will reduce gross debt-to-EBITDA from 6 as of Dec. 31, 2018 to 4.4x, Moody's said.

The upgrades also consider the good growth outlook for Horizon's key drugs like Krystexxa, Ravicti and Procysbi, the agency added.

The ratings also consider Horizon's modest size compared to peers in the global pharmaceutical industry, Moody's said.

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