S&P affirms Global Healthcare on add-on

S&P said its ratings on Global Healthcare Exchange LLC's $375 million outstanding term loan due 2022 and $25 million revolver due 2020 remain B following the company's announced plans to add $43 million to the first-lien term loan.

However, the recovery rating on the first-lien facility was revised to 4 from 3. The 4 recovery rating indicates an expectation of average (30% to 50%; upper half of the range) recovery in the event of a payment default.

The revision in the recovery rating reflects the agency’s expectation of weaker recovery prospects on the first-lien tranche due to the incremental debt.

Global Healthcare will use proceeds to fund acquisitions and bolster cash on the balance sheet.

The company’s corporate credit rating is B and the outlook is stable.

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