S&P rates Syneos Health loan BB

S&P said it assigned a BB rating to Syneos Health Inc.'s proposed senior credit facility in a leverage-neutral refinancing transaction.

The recovery rating is 3, indicating 50% to 70% expected default recovery.

The B+ rating and 6 recovery rating on the company's $403 million unsecured notes are unchanged. The 6 recovery rating indicates 0 to 10% expected default recovery.

S&P said the planned redemption of the $403 million unsecured notes will be incrementally negative for the recovery prospects for the senior secured credit facility.

The BB issuer credit rating on Syneos Health reflects a belief that the company is well positioned to gain market share in the long term as a top three contract research organization and the largest contract commercial organization.

S&P said it believes adjusted leverage should decline via debt reduction and EBITDA growth, staying in the 3x to 4x range in the long term.

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