Moody's rates MDVIP loans B2, Caa2

Moody's Investors Service said it assigned a B3 corporate family rating and a B3-PD probability of default rating to Mamba Purchaser, Inc., doing business as MDVIP.

The ratings are being assigned in conjunction with the pending leveraged buyout of the company.

At the same time, Moody's said it assigned a B2 rating to MDVIP's proposed first-lien senior secured credit facilities, consisting of a $500 million term loan due 2028 and a $70 million revolver expiring in 2026, as well as a Caa2 rating to a $185 million second-lien term loan due 2029.

The outlook is stable.

“The B3 CFR reflects the company's aggressive financial policies given the significant increase in pro forma Moody's-adjusted debt to EBITDA to 7.5x from approximately 3.5x at June 30, 2021, following the leveraged buyout,” Moody’s said in a news release.

“Supportive rating factors include the company's track record of deleveraging through EBITDA growth, good free cash flow generation, its growing membership base of affiliated physicians and service subscribers, strong member retention rates, as well as improving operating profit margin.”

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