S&P gives Midwest Veterinary B-

S&P said it gave B- ratings to Midwest Veterinary Partners LLC and its planned senior secured credit facility. The recovery rating is 3, reflecting an expectation for meaningful (50%-70%; rounded estimate: 55%) recovery in default.

“Our rating on MVP reflects our expectation for very high adjusted leverage and low levels of free operating cash flow generation. The company's proposed capital structure supports its aggressive, debt-funded acquisition growth strategy. Due to the increased debt burden, we expect adjusted debt to EBITDA to be about 12.5x for 2021, despite the full-year contribution of 82 hospitals that were acquired during 2020,” S&P said in a press release.

Midwest will use the loan proceeds to refinance its capital structure to support added debt-funded acquisitions.

The outlook is stable, reflecting an expectation for mid-single-digit percent organic revenue growth and the integration of more than 90 newly acquired hospitals through 2022, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.