Moody's rates INC loan Ba3, notes Caa1

Moody's Investors Service said it assigned B2 corporate family and probability of default ratings to INC Research, LLC and a Ba3 (LGD 3, 27%) rating to INC's proposed $350 million senior secured term loan facility and $75 million revolving credit facility. Moody's also assigned a rating of Caa1 (LGD 5, 82%) to INC's proposed $250 of million senior notes.

The outlook is stable.

On May 4, INC announced it entered into a definitive agreement to acquire Kendle for a total enterprise purchase price of $362 million. Proceeds from the offering are expected to be used to fund the acquisition, refinance existing debt at both INC and Kendle and pay fees and expenses related to the transaction.

The reflects INC's relatively small size with combined revenues of less than $650 million, high pro forma leverage for fiscal 2011 at 7.4 times and competition from larger, more well capitalized industry players, the agency added.

The ratings also consider INC's geographic and segment diversification through its global platform operating in 42 countries and the breadth of clinical services it will provide with the Kendle acquisition, the agency said.

© 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.