MED ParentCo L.P.'s Proposed $80 Million Incremental First-Lien Term Loan Rated 'B-'

NEW YORK (S&P Global Ratings) July 14, 2020--S&P Global Ratings today assigned its 'B-' issue-level and '3' recovery ratings to Vienna, Va.-based MED ParentCo L.P.'s (operating as MyEyeDr.) proposed $80 million incremental first-lien term loan due 2026. The '3' recovery rating indicates our expectation for meaningful (50%-70%; rounded estimate: 55%) recovery in the event of a payment default or bankruptcy. The first-lien facilities (including the revolver and first-lien term loans) are secured by a first-priority interest on substantially all assets held by the borrower. We expect MyEyeDr. to issue $80 million of new preferred equity units, which its existing investors will hold. We view the preferred instrument as akin to debt. The proposed transactions will improve MyEyeDr.'s liquidity position during

...- We have assigned our 'B-' issue-level and '3' recovery ratings (50%-70%; rounded estimate: 55%) to the company's proposed $80 million incremental first-lien term loan. - The existing issue-level and recovery ratings are unchanged. We revised our recovery rounded estimate on the first-lien facilities to 55% from 60% because of additional first-lien debt in the capital structure. - Our simulated default scenario contemplates a steep decline in revenue and EBITDA, driven by declining economic activity and increasing competition, along with operational missteps related to integrating acquired operations. - We assume the company would reorganize as a going concern to maximize lenders' recovery prospects, based on its good market position and the non-discretionary nature of its products...

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