...January 29, 2021 TORONTO (S&P Global Ratings) Jan. 29, 2021--S&P Global Ratings today assigned its 'B' issue-level rating and '3' recovery rating to Pathway Vet Alliance LLC's proposed senior secured term loan (about $1.02 billion, including the delayed-draw term loan). The '3' recovery rating indicates our expectation for meaningful (50%-70%; rounded estimate: 50%) recovery in the event of a payment default. The company is repricing its first-lien debt. We view this transaction as leverage-neutral. We will remove the rating on the existing term loan once the transaction closes. Our 'B' issuer credit rating on Pathway reflects its leading position in U.S. veterinary practice management and positive trends in the pet industry. However, the company is smaller than peers such as NVA Holdings Inc. and Mars Inc., which could be a disadvantage competing for acquisitions. The stable outlook reflects our expectation that Pathway will continue generating acquisition-driven, double-digit percentage...
