Moody’s rates Envision loan Ba3

Moody's Investors Service said it confirmed Envision Healthcare Corp.’s B1 corporate family rating and B1-PD probability of default rating.

In addition, the agency assigned a Ba3 rating to the company's proposed $3.295 billion first-lien term loan due 2023.

Concurrently, Moody's confirmed the B3 ratings on Envision's outstanding $750 million 5 1/8% senior notes due 2022.

Subsequently, it expects to confirm the B3 rating on AmSurg Corp.’s $1.1 billion 5.625% senior notes due 2022, which will remain outstanding and rank pari passu with Envision's senior notes.

Additionally, Moody's affirmed Envision's speculative grade liquidity rating of SGL-1.

The outlook is positive. This action concludes the ratings review on Envision initiated on June 16.

On June 15, Envision entered into a definitive agreement to merge in an all-stock transaction with AmSurg.

The B1 corporate family rating reflects the significant integration risk that Envision will face upon consummating its transformational AmSurg merger and Moody's expectation that adjusted debt to EBITDA will remain relatively high around 4.5 times in the near-term.

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