U.S.-based veterinary practice management company Pathway Vet Alliance LLC (doing business as Thrive Pet Healthcare) recently completed a debt-exchange transaction that S&P Global Ratings views as a de facto default. We think the compensation to first-lien debtholders to participate in the exchange is less than the original promise. As a result, we lowered our issuer credit rating (ICR) on Thrive to 'SD' (selective default) from 'CCC+'. At the same time, we lowered our issue-level rating on the company's first-lien term loan to 'D'. We expect to reassess our ICR on Thrive in the near term. The transaction placed a new $25 million super priority revolving credit facility (RCF) and a $215 million new money first out term loan in Thrive's
