Moody's assigns B2 to Ensemble loan

Moody's Investors Service said it assigned a B2 rating to Ensemble RCM, LLC's planned extended and upsized $200 million revolving credit facility due 2028.

All other ratings, including the B2 corporate family rating, the B2-PD probability of default rating and the B2 rating on the upsized $1.713 billion first-lien term loan due 2026, including the proposed new $297.7 million incremental term loan, are unaffected.

The incremental term loan will be fungible with the company's $1.4 billion term loan due 2026 and the proceeds will be used to repay the $300 million term loan issued in 2022. Moody's will then withdraw the 2022 incremental term loan at the close of the transaction.

“Moody's considers the transaction as credit positive because it increases Ensemble's total availability liquidity by $125 million and extends the maturity of its revolver facility to 2028 from August 2024 (subject to acceleration to 90 days prior to the first-lien term loan maturity in 2026 should more than $100 million of term loan debt remaining outstanding). The refinancing of the first-lien term loan is also expected by Moody's to generate around $4 million in annual interest expense savings,” the agency said in a press release.

The outlook is stable.

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