S&P rates Forefront add-on B

S&P said it assigned B issue-level and 3 recovery ratings to Dermatology Intermediate Holdings II Inc. subsidiary Dermatology Intermediate Holdings III Inc.'s planned incremental first-lien term loan. The parent does business as Forefront Dermatology. The 3 recovery rating indicates meaningful (50%-70%; rounded estimate: 50%) recovery in default.

The B ratings on the company and the company’s existing term loan facility and 3 recovery rating are unchanged, S&P said.

Forefront is expected to use the $100 million of proceeds to repay $73 million of revolver borrowings and for acquisitions, earnout payments, investments for pathology laboratory and medical aesthetics and financing fees.

The outlook is stable.

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