Moody's rates Syneos Health loans Ba3

Moody's Investors Service said it assigned Ba3 (LGD 3) ratings to the proposed senior secured credit facilities of Syneos Health, Inc. and downgraded the existing secured term loan ratings to Ba3 from Ba2.

Moody's also affirmed the Ba3 corporate family rating and probability of default rating at Ba3-PD.

The SGL-1 speculative grade liquidity rating also was affirmed.

The B2 rating on the unsecured notes of inVentiv Group Holdings, Inc. also was affirmed.

Moody's said it expects the notes will be repaid in full after the Oct. 1, 2019 call date later this year.

The outlook is stable.

The term loan A and revolver are being refinanced and the maturities are being extended to 2024 from 2022, the agency said, and the revolver upsized to $600 million from $500 million.

Moody's said it expects that Syneos will draw its delayed draw term loan later this year to fully repay the inVentiv unsecured notes.

The agency said it views the transaction as a credit positive as it will lengthen the company's debt maturity profile and lower cash interest costs.

The ratings reflect expectations that leverage will remain moderately high at more than 4x in the next 12- to 18-months, Moody's said.

Credit metrics are expected to improve in 2019 through earnings growth and debt repayment given an expectation for good cash generation through 2020, the agency said.

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