Moody's might cut Akorn

Moody's Investors Service said it placed the ratings of Akorn, Inc., including the B1 corporate family rating and B1-PD probability of default rating, under review for downgrade.

The action follows Akorn's announcement that it is acquiring VPI Holdings Corp., the parent company of VersaPharm Inc., for $440 million in cash.

Akorn will fund the transaction through a roughly $445 million increase in its existing term loan.

The B1 rating on the senior secured term loan, which is currently $600 million, was also placed under review for downgrade.

Moody's affirmed Akorn's SGL-2 speculative grade liquidity rating, reflecting the expectation for good liquidity.

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