Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers S > Headlines for Sharp Services, LLC > News item |
Moody's rates Sharp Services loan B2
Moody’s Investors Service said it assigned a B2 rating to Sharp Services, LLC's $211.4 million incremental first lien term loan due 2028. Sharp is a subsidiary of UDG Healthcare plc.
The company's other ratings, including its B3 corporate family rating, B3-PD probability of default rating and B2 rating on its first-lien senior secured credit facilities are unaffected.
The proceeds and an $81 million equity contribution will be used to fund the purchase of the remaining 75% stake in Berkshire Sterile Manufacturing, as well as pay related transaction fees and expenses. As part of the transaction, the company will also upsize its revolving facility to $130 million from $90 million.
“While the acquisition of BSM is strategically sensible, the transaction will increase Sharp's financial leverage to 6.9 times (from 6.1x), on Moody's adjusted basis, for the 12-month period ended June 30, 2023, and will slow the company's deleveraging trajectory. However, Moody's expects BSM to broaden Sharp's expertise and capabilities, as well as scale in primary sterile fill-finish and related services for vials, syringes, and cartridges. Additionally, BSM will provide Sharp with cross-selling opportunities of its clinical and commercial packaging services,” Moody’s said in a press release.
The outlook remains stable.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.