Moody’s assigns Unified Women’s B3

Moody’s Investors Service said it assigned a B3 corporate family rating and a B3-PD probability of default rating to Unified Women’s Healthcare LP. Moody’s also assigned B2 ratings to the company’s senior secured first-lien term loan and revolving credit facility.

Proceeds, including a proposed unrated $140 million eight-year second-lien term loan, will be used to fund the purchase of Unified by Altas Partners, cover existing deferred purchase obligations related to closed acquisitions, to close acquisitions under letters of intent and cover transaction-related expenses.

Unified's B3 rating reflects its moderate scale, high financial leverage, and execution risks associated with an active debt-funded acquisition strategy. Moody’s said it forecasts the company's proforma debt/EBITDA at the close of the refinancing transaction, including certain add-backs for transaction expenses and estimated contributions from acquisitions, will be about 7x.

“The B2 rating of the senior secured credit facilities is higher than that of the CFR reflecting the loss-absorption offered by the second-lien term loan,” Moody’s said in a press release.

The outlook is stable.

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