Research Update: SVP Holdings LLC 'B-' Rating Placed On CreditWatch Positive On Announced Merger With Mission Veterinary Partners

Birmingham, Ala.-based veterinary practice management company SVP Holdings LLC (d/b/a Southern Veterinary Partners [SVP]) announced its intent to merge with Mission Veterinary Partners (MVP) (rated 'B-'). As part of the transaction, SVP will issue a new $2.85 billion first-lien term loan, $200 million in non-convertible preferred shares, and place a new $250 million revolving credit facility, which we expect to be undrawn at close. The proposed merger effectively doubles SVP's scale, expanding its footprint across the U.S., and offers some procurement synergies, positioning the company for continued profitable growth in a favorable sector. When considering the proposed capital structure (including a simplification of the equity structure), we expect S&P Global Ratings-adjusted debt to EBITDA in the low-6x area in 2025

...- Birmingham, Ala.-based veterinary practice management company SVP Holdings LLC (d/b/a Southern Veterinary Partners [SVP]) announced its intent to merge with Mission Veterinary Partners (MVP) (rated 'B-'). As part of the transaction, SVP will issue a new $2.85 billion first-lien term loan, $200 million in non-convertible preferred shares, and place a new $250 million revolving credit facility, which we expect to be undrawn at close. - The proposed merger effectively doubles SVP's scale, expanding its footprint across the U.S., and offers some procurement synergies, positioning the company for continued profitable growth in a favorable sector. - When considering the proposed capital structure (including a simplification of the equity structure), we expect S&P Global Ratings-adjusted debt to EBITDA in the low-6x area in 2025 with some improvement in 2026 from growth and free cash flow generation above $125 million in those years. - Therefore, we placed our 'B-' issuer credit rating on SVP...

Research Update