Research Update: MED ParentCo L.P. Assigned 'B' Issuer Credit Rating; Outlook Stable; Debt Added In Buyout Also Rated

Goldman Sachs Merchant Banking Division has agreed to acquire optical retailer CVS Holdings I L.P., operating as MyEyeDr. We are assigning our 'B' issuer credit rating to MED ParentCo L.P., which will become the ultimate parent of CVS Holdings at transaction closing. The issuer credit rating we assigned to MED ParentCo is the same as the existing rating on CVS Holdings, which we will withdraw at transaction close. We are assigning our 'B' issue-level rating and '3' recovery rating to the company's proposed first lien credit facility, which includes a $125 million revolver due 2024 and a $845 million term loan due 2026. We are also assigning our 'CCC+' issue-level rating with a '6' recovery rating to the proposed $360

...- Goldman Sachs Merchant Banking Division has agreed to acquire optical retailer CVS Holdings I L.P., operating as MyEyeDr. - We are assigning our 'B' issuer credit rating to MED ParentCo L.P., which will become the ultimate parent of CVS Holdings at transaction closing. The issuer credit rating we assigned to MED ParentCo is the same as the existing rating on CVS Holdings, which we will withdraw at transaction close. - We are assigning our 'B' issue-level rating and '3' recovery rating to the company's proposed first lien credit facility, which includes a $125 million revolver due 2024 and a $845 million term loan due 2026. We are also assigning our '###+' issue-level rating with a '6' recovery rating to the proposed $360 million second-lien term loan due 2027. - The stable outlook reflects our expectation that MyEyeDr. will improve credit metrics due to profit growth from accretive acquisitions and same-store sales increases....

Research Update