Moody’s ups Alliance PDR, rates facilities

Moody's Investors Service said it affirmed Alliance Healthcare Services, Inc.'s B1 corporate family rating and upgraded the probability of default rating to B1-PD from B2-PD following the announced refinancing.

Concurrently, the agency assigned a Ba3 rating to the proposed $125 million first-lien revolver and $380 million first-lien term loan and a B3 rating to the proposed $150 million second-lien term loan.

Proceeds from the new debt will be used to refinance existing debt and cover fees and expenses. The speculative grade liquidity rating was withdrawn as the company no longer files publicly.

The outlook is stable.

“The refinancing improves liquidity as it extends the company's debt maturity profile and significantly increases the revolver to $125 million from $50 million,” Moody's analyst Scott Tuhy said in a news release.

“However, debt to EBITDA increases modestly to 4.7 times from 4.6 times prior to the transaction, keeping the company weakly positioned at the B1 rating.”

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