Rating Action: Moody’s assigns B2 rating in order to EyeCare Partners’ new pregressive first mortgage term loanGlobal Credit Research – 16 Aug 2022New York, August 16, 2022 — Moody’s Investors Service (“Moody’s”) assigned a B2 rating to be able to EyeCare Partners, LLC’s (“ECP”) proposed new $225 million incremental senior secured first lien term loan due November 2028. There are no changes to ECP’s existing ratings including the B3 Corporate Family Rating (CFR), the B3-PD Probability of Default Ranking (PDR), the first loan senior secured bank credit facility rating at B2, and the particular second note against it senior guaranteed bank credit score facility ranking at Caa2. The outlook remains stable. ECP has announced that it will be acquiring several eye care targets in the near future. ECP will be funding typically the transaction and adding cash to the balance sheet by raising a $225 million incremental initial lien phrase loan. In addition, ECP will also be repaying existing balances on its revolving credit rating facility. Pro forma for this transaction, Moody’s expect adjusted Debt/EBITDA to increase to close to 8x based on the last twelve months ending June 30, 2022. However, Moody’s expect leverage to decline towards 7x over this next 12 to 18 months reflecting earnings growth plus a smooth integration of these acquisitions. The acquisitions will also diversify ECP geographically. Assignments:.. Issuer: EyeCare Partners, LLC…. Senior Secured First Lien Term Loan, Assigned B2 (LGD3)RATINGS RATIONALEThe B3 CFR reflects ECP’s high leverage, aggressive growth strategy in addition to moderate geographic concentration within two states, Michigan and even Missouri, which would make ECP more susceptible to an economic downturn or additional impact from the coronavirus. Moody’s projects adjusted influence of approximately 8x debt/EBITDA (pro forma acquisitions) for the last twelve month ended June 30, 2022. Absent this gradual debt, influence has improved to 7. 3x for the last twelve months ended June thirty, 2022. Going forward, Moody’s expects power to decrease towards 7x by often the end associated with 2023 as growth continues and your acquisitions are usually fully integrated. Integration risk is a key issue because ECP offers been aggressive in development through acquisitions. In addition, while e-commerce penetration in the optical sector is likely to remain moderate, Moody’s expects that, over time, traditional optic retailers will face margin and market share pressure from growing online competition. The particular rating considers that while leverage is increasing, the exact additional scale supported through the acquisitions help somewhat offset the risks associated with the elevated leverage. Typically the acquisitions will also diversify ECP geographically. ECP benefits from the industry’s favorable long-term growth prospects, including growing demand with regard to optometrist together with ophthalmological services and eyewear products. ECP also owns ambulatory surgery centers, which will benefit through growing demand as patients and payors generally prefer the outpatient environment (primarily due for you to lower cost and additionally better outcomes) for certain specialty procedures, including cataract surgeries. The B3 CFR rating is further supported simply by Moody’s expectation that the company will maintain good liquidity over the next 12-18 weeks and generate positive free cash flow before expansion. Liquidity is further supported by simply ECP’s estimated $55 mil pro forma cash balance and full availability on its $200 million revolver due 2025 following at the close of the proposed refinancing. The B2 ratings regarding the company’s senior anchored credit facilities is one notch above the B3 CFR reflecting the level of junior capital provided by the second lien expression loan in the company’s capital structure. Social and governance risks usually are material to help ECP’s ratings. ECP was negatively impacted by the coronavirus pandemic, the social risk, as volumes declined at the height of the pandemic causing leverage to improve. Aside coming from coronavirus, ECP faces other social risks, such as the rising concerns around the access and affordability of healthcare services. However , Moody’s does not consider the particular eye care providers not to mention ASCs to face the same level regarding social risk as hospitals as ASCs are viewed as an affordable alternative in order to hospitals for elective procedures. From a governance perspective, Moody’s expects financial policies to be able to remain intense given private equity ownership. This stable perspective reflects Moody’s expectation that leverage will certainly decline towards 7x by the end of 2023 as progress continues and the acquisitions will be fully incorporated. The stable outlook furthermore reflects Moody’s favorable view of typically the longer-term prospects for vision care. FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGThe rankings could end up being downgraded if revenue or even profitability weakens or in case the company fails for you to effectively manage its rapid growth. A downgrade could also occur if this company’s fluid weakens or perhaps if the carrier’s financial policies become more extreme or when adjusted debt/EBITDA is does not drop below seven. 5 times by often the end involving 2023. Often the ratings could be upgraded when the company demonstrates stable organic growth whilst effectively executing its expansion strategy. An upgrade would be supported by means of sustained, steady free income and debt to EBITDA that will be expected to get maintained below 6. 5 times. EyeCare Partners, LLC, headquartered inside St . Louis, Missouri, is usually the largest medically-focused eye care services provider. ECP is vertically integrated, providing optometry, ophthalmology and retail products. Professional forma for the acquisitions, ECP will have more than 750 locations across 18 states. For the last twelve months finished June 30, 2022, ECP generated $1. 4 billion of revenues. The principal methodology used in this rating has been Business and also Consumer Services published throughout November 2021 and available at https://ratings.moodys.com/api/rmc-documents/356424. Alternatively, please see the Rating Methodologies page upon https://ratings.moodys.com for a copy of this methodology. REGULATORY DISCLOSURESFor additional specification connected with Moody’s key rating assumptions and sensitivity analysis, view the sections Methodology Assumptions as well as Sensitivity to help Assumptions within the disclosure form. Moody’s Score Symbols and Definitions can be found on https://ratings.moodys.com/rating-definitions. For scores issued on a program, series, category/class with debt or maybe security this particular announcement provides certain regulatory disclosures in relation to each score of a new subsequently issued bond as well as note for the same series, category/class of financial debt, security or pursuant to a program for which the ratings are derived exclusively by existing evaluations in accordance with Moody’s rating practices. For reviews issued on the support provider, this announcement provides certain regulatory disclosures in relation to your credit standing action about the support provider and in relation to each particular credit rating action for securities that derive their credit history ratings from your support provider’s credit status. For provisional ratings, this specific announcement offers certain regulating disclosures inside relation in order to the eventual rating designated, and connection to some sort of definitive rating that may be given subsequent to be able to the final issuance from the personal debt, in each case where the transaction structure plus terms have not changed prior to the assignment of the definitive ranking in a good manner that will would have affected the score. For further information please see the issuer/deal page for that respective issuer on https://ratings.moodys.com. For any affected investments or rated entities receiving direct credit support via the primary entity(ies) of the credit standing action, in addition to whose star ratings may change as a result of this kind of credit score actions, the associated regulatory disclosures will be those of the exact guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure for you to rated organization, Disclosure out of rated enterprise. The status has been disclosed towards the ranked entity or even its designated agent(s) and issued with no amendment resulting right from that disclosure. This ranking is solicited. Please refer to Moody’s Policy intended for Designating and even Assigning Unsolicited Credit Ratings available on the website https://ratings.moodys.com. Regulatory disclosures contained in that press release apply to the particular credit rating and, in the event that applicable, typically the related rating outlook or perhaps rating review. Moody’s general principles to get assessing environmental, social together with governance (ESG) risks found in our credit score analysis are available at https://ratings.moodys.com/documents/PBC_1288235. The Global Scale Credit Rating on this Credit Standing Announcement was issued by way of one of Moody’s affiliates outside the EU and is definitely endorsed by just Moody’s Deutschland GmbH, A good der Welle 5, Frankfurt is Main 60322, Germany, in accordance with Art. 4 paragraph 3 about the Regulation (EC) No 1060/2009 in Credit Status Agencies. Further information on the EU endorsement status and on the Moody’s office that issued this credit rating is available with https://ratings.moodys.com. Your Global Scale Credit Rating about this Credit score Rating Announcement was released by among Moody’s affiliates outside often the UK plus is endorsed by Moody’s Investors Support Limited, One Canada Square, Canary Wharf, London E14 5FA under the law relevant to credit rating agencies in the UK. Further info around the UK endorsement status and your Moody’s office that given the credit rating is available on https://ratings.moodys.com. Please see https://ratings.moodys.com for any updates at changes to the lead ranking analyst and to the Moody’s legal business that features issued the exact rating. Please see the issuer/deal page regarding https://ratings.moodys.com pertaining to additional corporate disclosures for each credit score. Jean-Yves Coupin Vice President – Senior Analyst Corporate Finance Group Moody’s Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U. S. The. JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 Ola Hannoun-Costa Associate Managing Director Corporate Finance Group JOURNALISTS: 1 212 553 0376 Client Services: 1 212 553 1653 Releasing Office: Moody’s Traders Service, Incorporation. 250 Greenwich Street New York, NY 10007 U. S. A. MEDIA: 1 212 553 0376 Client Assistance: 1 212 553 1653 © 2022 Moody’s Corporation, Moody’s Buyers Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliate marketers (collectively, “MOODY’S”). All rights reserved. CREDIT RATINGS ISSUED BY MOODY’S CREDIT SCORES AFFILIATES ARE THEIR CURRENT OPINIONS FROM THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS, SERVICES PLUS INFORMATION PUBLISHED BY MOODY’S (COLLECTIVELY, “PUBLICATIONS”) MAY INCLUDE SUCH PRESENT OPINIONS. MOODY’S DEFINES CREDIT RISK AS THE DANGER THAT A GOOD ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE IN ADDITION TO ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE APPLICABLE MOODY’S RATING SYMBOLS AND EVEN DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S CREDIT RATINGS. CREDIT SCORING DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR EVEN PRICE VOLATILITY. CREDIT RANKINGS, NON-CREDIT ASSESSMENTS (“ASSESSMENTS”), TOGETHER WITH OTHER OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MIGHT ALSO CONSIST OF QUANTITATIVE MODEL-BASED ESTIMATES ASSOCIATED WITH CREDIT CHANCE AND RELATED OPINIONS OR PERHAPS COMMENTARY RELEASED BY MOODY’S ANALYTICS, INC. AND/OR ITS AFFILIATES. MOODY’S CREDIT SCORES, ASSESSMENTS, SOME OTHER OPINIONS AND ADDITIONALLY PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR MAYBE FINANCIAL ADVICE, AND MOODY’S CREDIT EVALUATIONS, ASSESSMENTS, ADDITIONAL OPINIONS NOT TO MENTION PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, AS WELL AS HOLD PARTICULAR SECURITIES. MOODY’S CREDIT RATINGS, TESTS, OTHER VIEWS AND MAGAZINES DO NOT COMMENT ON THE PARTICULAR SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT SCORES, ASSESSMENTS AND OTHER OPINIONS AND ALSO PUBLISHES THE PUBLICATIONS WITH THE EXPECTATION AS WELL AS UNDERSTANDING THAT EACH TRADER WILL, WITH DUE CARE, MAKE THEIR OWN STUDY AND EVALUATION OF EACH SECURITY THAT WILL IS UNDER CONSIDERATION FOR BUY, HOLDING, OR SALE. MOODY’S CREDIT SCORING, EXAMINATION, OTHER THOUGHTS, AND JOURNALS ARE CERTAINLY NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS, CHECKS, OTHER VIEWPOINTS OR GUIDES WHEN MAKING A GREAT INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR EVEN OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING HOWEVER, NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR PERHAPS RESOLD, OR MAYBE STORED WITH REGARD TO SUBSEQUENT MAKE USE OF FOR ANY SUCH PURPOSE, IN WHOLE AS WELL AS IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, SIMPLY BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT. MOODY’S CREDIT SCORES, EXAMS, OTHER IDEAS AND BOOKS AREN’T MEANT FOR USE BY ANY PERSON AS A new BENCHMARK AS THAT TERM IS DEFINED FOR REGULATING PURPOSES PLUS MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK. All information contained herein can be obtained just by MOODY’S with sources believed by it to help be accurate and reliable. Because in the possibility of human or maybe mechanical error as well as some other factors, however, all information contained herein is certainly provided “AS IS” without warranty from any kind. MOODY’S adopts all necessary measures so that the details it uses inside of assigning a credit rating is of sufficient quality and additionally from sources MOODY’S views to turn out to be reliable which includes, when appropriate, independent third-party sources. However, MOODY’S is normally not an auditor not to mention cannot in every instance independently verify as well as validate data received in the rating process or at preparing their Publications. To the extent permitted by law, MOODY’S and also its directors, officers, employees, agents, representatives, licensors as well as suppliers disclaim liability to any person or entity for just about any indirect, special, consequential, or even incidental losses or damages whatsoever arising from or in connection with the facts contained herein or the use of or perhaps inability to use any such information, even if MOODY’S or any kind of its company directors, officers, workers, agents, associates, licensors or maybe suppliers is without a doubt advised in advance of the possibility of this kind of losses as well as damages, which include but not limited to: (a) any loss of present or prospective profits or (b) virtually any loss or even damage arising where the relevant monetary instrument might be not the subject of a particular credit score allocated by MOODY’S. Towards the extent permitted from law, MOODY’S and it is directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for almost any direct or compensatory losses or perhaps damages caused to the person or thing, including but not restricted to by just about any negligence (but excluding fraud, willful misconduct or any other type of legal responsibility that, for your avoidance of doubt, by law cannot become excluded) for the part of, or any contingency within or beyond the control of, MOODY’S or some kind of it has the directors, officials, employees, brokers, representatives, licensors or providers, as a result of or maybe regarding the particular information contained herein or maybe the use associated with or inability to utilize almost any such information and facts. NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY KIND OF PARTICULAR OBJECTIVE OF VIRTUALLY ANY CREDIT RANKING, ASSESSMENT, VARIOUS OTHER OPINION OR EVEN INFORMATION IS GIVEN OR PERHAPS MADE BY MOODY’S IN ANY FORM OR WAY WHATSOEVER. Moody’s Investors Program, Inc., your wholly-owned credit history rating agency subsidiary regarding Moody’s Company (“MCO”), hereby discloses that most issuers involving debt stock options (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock graded by Moody’s Investors Provider, Inc. possess, prior to assignment connected with any credit rating, agreed to pay in order to Moody’s Shareholders Service, Incorporation. for credit ratings opinions plus services rendered by this fees ranging from $1, 000 to be able to approximately $5, 000, 000. MCO in addition to Moody’s Option traders Service likewise maintain guidelines and procedures to address the independence of Moody’s Investors Company credit scores and even credit rating processes. Information regarding certain affiliations that may exist between owners of MCO and scored entities, together with between entities who hold credit scoring as a result of Moody’s People Service and additionally have in addition publicly reported to typically the SEC an ownership interest in MCO of more than 5%, is posted annually in www.moodys.com underneath the heading “Investor Relations — Corporate Governance — Movie director and Shareholder Affiliation Policy. ”Additional terms for Australia only: Any publication into Australia of this document is actually pursuant towards the Australian Financial Services License with MOODY’S affiliate, Moody’s Individuals Service Pty Limited ABN 61 003 399 657AFSL 336969 and Moody’s Stats Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to end up being provided only to “wholesale clients” within the meaning for section 761G of this Corporations Act 2001. By continuing for you to access the following document from within Australia, you represent to help MOODY’S that you are, or are accessing often the document as a representative of, some “wholesale client” and of which neither a person nor your entity an individual represent may directly as well as indirectly disseminate this document or its contents to “retail clients” inside the meaning of section 761G about the Corporations Act 2001. MOODY’S credit rating is an opinion as in order to the creditworthiness of a fabulous debt obligation from the company, not concerning the equity securities of the issuer or any type of form in security that will is available to retail investors. Additional terms meant for Japan just: Moody’s Japan K. K. (“MJKK”) is going to be a wholly-owned credit standing agency subsidiary of Moody’s Group Japan G. Nited kingdom., which is wholly-owned by Moody’s Overseas Holdings Inc., an important wholly-owned part of MCO. Moody’s SF Japan E. K. (“MSFJ”) is a wholly-owned credit score company subsidiary from MJKK. MSFJ is not a Nationally Recognized Statistical Ranking Organization (“NRSRO”). Therefore , credit score ratings issued by MSFJ are Non-NRSRO Credit Rankings. Non-NRSRO Credit rating Ratings are usually assigned by an company that is without question not the NRSRO not to mention, consequently, the exact rated responsibility will not really qualify for certain types of treatment under U. S. laws. MJKK and also MSFJ happen to be credit rating agencies registered along with the Asia Financial Solutions Agency as well as their registration numbers are really FSA Commissioner (Ratings) No. 2 and 3 respectively. MJKK or MSFJ (as applicable) hereby disclose the fact that most issuers of credit card debt securities (including corporate plus municipal bonds, debentures, notes and commercial paper) in addition to preferred stock rated simply by MJKK or even MSFJ (as applicable) have, prior to be able to assignment of any credit rating, decided to pay for you to MJKK or perhaps MSFJ (as applicable) designed for credit comparisons opinions and even services made because of it fees ranging from JPY100, 000 to help approximately JPY550, 000, 500. MJKK together with MSFJ as well maintain plans and methods to address Japanese regulatory requirements. ​

Leave a Reply

Your email address will not be published.