Moody’s ups Global Healthcare PDR, facilities

Moody's Investors Service said it affirmed Global Healthcare Exchange, LLC's B2 corporate family rating, upgraded the probability of default rating to B2-PD from B3-PD, upgraded the first-lien credit facilities to B1 from B2 and assigned a Caa1 rating to the new second-lien credit facility.

The outlook is stable.

The company’s first-lien term loan will be increased by $10 million to $425.1 million, while the $25 million first-lien revolver will be unchanged and is expected to be undrawn at closing.

The new second-lien term loan credit facility will be $135 million.

Proceeds from the incremental term loan, new second-lien term loan and cash on hand at Global Healthcare will be used to fund an estimated $189 million dividend to private equity owners Thoma Bravo.

Moody’s said the upgrade of the probability of default rating and the ratings on the first-lien credit facilities reflects the addition of second- lien debt to the capital structure, which will provide first-loss support in a default scenario.

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