Moody’s ups Press Ganey, rates loan B2

Moody's Investors Service said it upgraded Press Ganey Holdings, Inc.’s corporate family rating to B2 from B3 and probability of default rating to B2-PD from B3-PD.

The agency also assigned a B2 rating to the company's proposed upsized $930 million first-lien term loan.

Additionally, Moody's affirmed the ratings for the senior secured first-lien revolving credit facilities at B2 and upgraded the ratings for the senior secured second-lien term loan to Caa1 from Caa2.

The agency took no action on and expects to withdraw the B2 rating on the existing $844 million first-lien term loan upon the close of the upsized first-lien term loan.

The outlook is stable.

“The upgrades broadly reflect Press Ganey's reduction of debt to EBITDA since the LBO transaction in 2016,” Moody’s said in a news release.

“Press Ganey had leverage of approximately 6.3x as of December 31, 2017 (including Moody's adjustment to expense capitalized software) and is expected to continue to de-lever to under 6x over the next 12 to 18 months.

“The expected reduction in leverage will be driven by continued organic revenue and EBITDA growth bolstered by tuck-in M&A activity funded partially from free cash flow.”

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.