Article
Thrive Pet Healthcare Lenders Regroup With Advisors Ahead of Possible Second-Step Talks
By: Harvard Zhang
Certain lenders to privately held Thrive Pet Healthcare are once again seeking advice from Akin Gump and PJT Partners to evaluate next steps as the company’s 2028 maturity wall approaches, according to sources.
For the second quarter of 2026, Thrive Pet disclosed that adjusted EBITDA rose 7.4% year over year to $46 million from $42.8 million, and revenue increased 5.2% to $337.2 million in the same comparison, the sources said. Cash stood at $94.1 million as of quarter-end, they added.
The average price of Thrive’s $1.325 billion SOFR+700 bps first lien, second-out PIK term loan due June 2028 is 80.17 as of today, up from 76.57 three months ago, according to Solve.
In March 2025, the TSG Consumer Partners-backed veterinary service network completed a new financing transaction that provided the company with $350 million of enhanced liquidity and extended the maturities of all of its debt instruments. First lien lenders at the time worked with Akin Gump and PJT Partners.
In March of this year, Moody’s Ratings downgraded Thrive Pet Healthcare, attributing the move to “our expectation that Thrive’s default probability is very high, given its weak credit metrics and unsustainable capital structure, despite improving profitability – we also consider that Thrive’s cash balance, although currently healthy, will be exhausted in 2027 due to high fixed charges relative to earnings generation.”
“Thrive’s Caa3 CFR reflects its very high leverage, which we expect to remain above 15x on a Moody’s-adjusted basis over the next 12 to 18 months,” the ratings agency said. “Although Thrive’s profitability is improving due pricing actions, lower doctor attrition and use of contract labor and cost management actions for operating expenses, we still view the company’s margins as very thin.”
“A track record of negative free cash flow and historical depletion of cash on the balance sheet also constrain the rating,” Moody’s added.
An estimate of the company’s capital structure as of Sept. 30, 2025, is shown below:
Thrive Pet Healthcare, sponsor TSG Consumer Partners and the advisors involved did not respond to requests for comment.
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