Research Update: Finland-Based Health Care Provider Mehilainen 'B' Ratings Affirmed On Proposed Pihlajalinna Acquisition; Outlook Stable

On Nov. 5, 2019, Mehiläinen announced that it had agreed to acquire all issued and outstanding shares in Pihlajalinna PLC, valuing Pihlajalinna's total equity at about €362 million. The final cash acquisition settlement will also include the repayment of most of Pihlajalinna's existing debt. The transaction will partially be funded by a cash equity contribution from its majority owner--private equity group CVC Partners--and rollover of equity from Pihlajalinna's existing minority shareholders. If approved by the regulator, the transaction will create the leader in the private health and social care services sector in Finland, adding significant scale and scope to Mehiläinen's existing business. We are therefore affirming our 'B' issuer credit rating and stable outlook on Mehiläinen, and our 'B' issue

...- On Nov. 5, 2019, MehilSinen announced that it had agreed to acquire all issued and outstanding shares in Pihlajalinna PLC, valuing Pihlajalinna's total equity at about 362 million. The final cash acquisition settlement will also include the repayment of most of Pihlajalinna's existing debt. The transaction will partially be funded by a cash equity contribution from its majority owner--private equity group CVC Partners--and rollover of equity from Pihlajalinna's existing minority shareholders. - If approved by the regulator, the transaction will create the leader in the private health and social care services sector in Finland, adding significant scale and scope to MehilSinen's existing business. - We are therefore affirming our 'B' issuer credit rating and stable outlook on MehilSinen, and our 'B' issue ratings on the upsized senior secured first-lien term loan, due August 2025. We are also affirming our '###+' issue rating on the group's 200 million secured second-lien, due August 2026....

Research Update