Moody's rates Auxilium loan Ba2

Moody's Investors Service said it assigned Auxilium Pharmaceuticals, Inc. a B2 corporate family rating, a B2-PD probability of default rating and a Ba2 rating on Auxilium's $225 million senior secured credit facility.

At the same time, Moody's assigned a SGL-2 speculative grade liquidity rating.

The outlook is stable.

Moody's said the B2 rating reflects the company's modest size and scale, its significant revenue concentration in its top three products, its limited track record of profitability and competitive pressures affecting the Testim franchise.

The rating gives credit for the company's niche focus in urology, and potential upside from cost synergies arising from the recent Actient acquisition and the pending FDA approval of Xiaflex in Peyronie's Disease. On a pro forma basis, debt/EBITDA totaled 6.6 times in 2012, which Moody's said it views as high in light of product concentration.

© 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.