Fitch rates Atnahs loan B+

Fitch Ratings said it assigned Atnahs Pharma UK Ltd.’s upcoming issue of €260 million senior secured term loan an expected rating of B+/RR4. The loan will be issued by Antigua Bidco Ltd. Fitch affirmed Antigua Bidco's long-term issuer default rating at B+. The debt issuing company is the top entity in a restricted group that indirectly owns Atnahs. The proceeds will be used to fund recently announced acquisitions of drug intellectual property rights.

The B+ issuer rating continues to reflect Atnahs' strong operating profitability, high free cash flow and reasonable leverage levels. “We view the acquisitions as rating-neutral as additional debt is supported by proportionate equity co-funding that prevents leverage from increasing. In addition, the new products will contribute to improved scale and diversification as well as support the company's high operating profitability with acquisition economics aligned with Atnahs' previously communicated M&A strategy,” said Fitch in a press release.

The outlook is stable.

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