Moody’s gives Specialty Pharma III B3

Moody’s Investors Service said it assigned ratings to Specialty Pharma III Inc. (Wedgewood Pharmacy), including a B3 corporate family rating, B3-PD probability of default rating and a B3 rating to the $220 million senior secured first-lien credit facilities.

“Wedgewood Pharmacy’s B3 CFR is constrained by its small size with less than $200 million in revenue and its very high financial leverage. Moody’s estimates pro forma debt/EBITDA is over 7x. The ratings are also constrained by the company’s event and financial policy risks related to its private equity ownership,” Moody’s said in a press release.

Proceeds will be used, along with equity, to finance Wedgewood Pharmacy’s recapitalization by Partners Group. The remaining stake will be owned by the company’s management and other shareholders.

The outlook is stable.

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