TORONTO (S&P Global Ratings) May 10, 2021--S&P Global Ratings today said Pathway Vet Alliance LLC's proposed $200 million incremental first-lien term loan add-on will not affect the company's credit quality. The company will use the proceeds for general corporate purposes, which may include future acquisitions and pay transaction-related fees and expenses. All of our ratings on Pathway Vet Alliance LLC, including the 'B' issuer credit rating are unchanged. The outlook remains stable. Our issuer credit rating on Pathway reflects positive tailwinds in the pet industry, but its narrow operating focus in the highly fragmented veterinary practices market. The rating also reflects our expectation that Pathway will remain acquisitive and that its adjusted leverage will remain high, in the 7x-8x area
