Moody's rates inVentiv loan Ba3, notes Caa1

Moody's Investors Service said it affirmed the B2 corporate family and probability of default ratings and stable outlook of inVentiv Health Inc., following the announced acquisitions of i3 Global and Campbell Alliance Group, Inc. for $540 million.

Moody's said it also affirmed the Ba3 (LGD3, 31%) rating of inVentiv's $75 million senior secured revolver due 2015 and $525 million senior secured term loan due 2016, Caa1 (LGD5, 86% from 85%) $275 million of unsecured notes due 2018 and SGL-2 speculative-grade liquidity rating.

Moody's assigned a Ba3 (LGD3, 31%) rating to the proposed $100 million senior secured term loan due 2016 and $200 million delayed draw term loan due 2016 and a Caa1 (LGD5, 86%) rating to the $150 million of unsecured notes.

The proceeds of the debt, along with cash on hand and incremental equity from inVentiv's shareholders will fund the two acquisitions, expected to close in February and March of 2011.

The ratings are constrained by project cancellations due to FDA non-approval decisions or generic competition of client's products, reduced client marketing budgets and pharmaceutical industry consolidation, the agency said.

The ratings are supported by the breadth of inVentiv's diverse service offerings, which over time could result in increased cross-selling opportunities and stronger client relationships, Moody's said.

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