SVP Holdings LLC 'B-' Rating Affirmed Following New Debt Issuance, Stable Outlook; Debt Rated

SVP Holdings LLC issued an additional $150 million fungible incremental first-lien term loan and $100 million delayed-draw first-lien term loan (non-fungible, undrawn at close) to fund acquisitions. This increases leverage; however, cash flow generation remains positive. We affirmed our 'B-' issuer credit rating on SVP Holdings LLC (d/b/a Southern Veterinary Partners). We also assigned a 'B-' issue-level rating to the new delayed-draw term loan and affirmed our 'B-' issue-level rating on the other first-lien credit facilities; the recovery ratings are '3'. In addition, we affirmed the 'CCC' issue-level rating on the second-lien credit facility; the recovery rating remains '6'. The stable outlook reflects our expectation for revenue and EBITDA growth in 2021 and 2022 and for the company to generate

...September 17, 2021 - SVP Holdings LLC issued an additional $150 million fungible incremental first-lien term loan and $100 million delayed-draw first-lien term loan (non-fungible, undrawn at close) to fund acquisitions. - This increases leverage; however, cash flow generation remains positive. - We affirmed our 'B-' issuer credit rating on SVP Holdings LLC (d/b/a Southern Veterinary Partners). - We also assigned a 'B-' issue-level rating to the new delayed-draw term loan and affirmed our 'B-' issue-level rating on the other first-lien credit facilities; the recovery ratings are '3'. In addition, we affirmed the '###' issue-level rating on the second-lien credit facility; the recovery rating remains '6'. - The stable outlook reflects our expectation for revenue and EBITDA growth in 2021 and 2022 and for the company to generate about $30 million to $40 million free cash flow in 2021 and 2022, but with S&P Global Ratings-adjusted leverage remaining very high at above 10x. TORONTO (S&P Global...

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