Fitch assigns B to IVC, loans

Fitch Ratings said it assigned IVC Acquisition MidCo Ltd. (IVCE) an expected long-term issuer default rating B with a stable outlook. The agency also assigned an expected B senior secured rating with an RR4 recovery rating to VetStrategy Canada Holdings Inc.'s (VS) planned $1.25 billion senior secured term loan B and IVC Acquisition Ltd.'s extended existing term loanBs of £900 million and €2.1 billion.

IVCE is the top entity of the new restricted group following the announced refinancing. The transaction consolidates VS into the group.

“The transaction is largely neutral to leverage with the new proceeds to be used to redeem or extend the existing facilities. Fitch expects to assign final IDR and debt ratings on completion of the transaction,” the agency said in a statement.

The agency added, “The consolidation of VS has increased IVCE's business scale and extended its geographic footprint to Canada, which contributes to 21% of revenue. We anticipate material synergies and scale benefit within the expanded group from procurement, shared resources, and an integrated digital platform. Fitch expects that IVCE will maintain or grow its leading market positions, with steady revenue growth, despite some current softness in profitability and pressure on FCF margins, reflecting investments in staff and platforms such as digital infrastructure.”

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