Moody’s gives U.S. Acute Care, notes B2

Moody’s Investors Service said it assigned a B2 corporate family rating and B2-PD probability of default rating to U.S. Acute Care Solutions, LLC. Moody’s also gave B2 ratings to the company’s planned $375 million of senior secured notes.

The B2 CFR reflects USACS’ market position as the fourth largest emergency department physician staffing provider, high financial leverage and material execution risk associated with an active debt-funded acquisition strategy.

Proceeds along with additional $466 million preferred equity financing from Apollo Management LP, the new private equity investor, will be used to repay debt, buy a portion of outstanding shares and cover transaction-related expenses. As a result of this transaction, the current investor, Welsh, Carson, Anderson & Stowe will sell all of its stake in the company.

The outlook is stable.

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