Moody’s rates MedAssets CFR B3, loans B2, Caa2

Moody's Investors Service said it assigned a B3 corporate family rating and B3-PD probability of default rating to MedAssets, Inc. (New).

At the same time, the agency assigned B2 (LGD 3) ratings to the company's proposed first-lien senior secured credit facilities, including a $1.13 billion first-lien senior secured term loan and a $100 million revolving credit facility.

Moody's also assigned a Caa2 (LGD 5) rating to the company's proposed $500 million senior secured second-lien term loan.

The outlook is stable.

Proceeds from the term loans, along with a contribution of common equity, will fund the leveraged buyout of the company by Pamplona Capital Management, refinance existing debt, and pay transaction fees and expenses.

"The B3 corporate family rating reflects the very high financial leverage resulting from the sizeable amount of debt that will be used to fund the leveraged buyout of the company," Moody's assistant vice president Daniel Gonçalves said in a news release.

"However, the company's credit profile benefits from its strong market position and favorable business fundamentals within the RCM and SCM businesses."

© 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.