Moody's gives HealthCare Royalty notes B2

Moody's Investors Service said it gave a B2 rating to the senior unsecured notes of HCRX Investments HoldCo, LP, a subsidiary of HealthCare Royalty, Inc.

There are no changes to the company's other ratings including the Ba3 corporate family rating, the Ba3-PD probability of default rating, the Ba2 senior secured ratings and the SGL-1 speculative grade liquidity rating.

“The B2 rating on the unsecured notes reflects their junior position in the capital structure relative to a senior secured term loan and senior secured revolving credit facility. There is a downstream guarantee on the unsecured notes from an intermediate holding company, but not from HealthCare Royalty, Inc., i.e. the ultimate parent and filer of the financial statements,” Moody’s said in a press release.

The proceeds, IPO proceeds, expected to be about $500 million, and proceeds from a secured credit agreement, will be used to recapitalize the company by combining a series of limited partnerships and offering public equity.

The outlook is stable.

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