Moody's: Medi-Partenaires notes B3, CFR B2

Moody's Investors Service said it assigned a B2 corporate family rating and a B2-PD probability of default rating to Medi-Partenaires SAS.

Concurrently, Moody's assigned a provisional B3 rating, with a loss given default assessment of LGD4-65%, to the company's proposed €385 million of aggregated senior secured notes.

The outlook is stable.

In addition to the proposed notes issuance, Medi-Partenaires is putting in place a new super-senior revolving credit facility of €60 million - located at Sante Partenaires SAS - which will benefit from a contractual priority positioning in the waterfall. Shareholder funding includes around €285 million of convertible bonds, which Moody's analyzed as being equivalent to equity.

Neither the notes nor the revolver will benefit from upstream guarantees from the operating subsidiaries, although Sante Partenaires will guarantee the notes.

Moody's said the notes and the revolver will be secured upon the same collateral, which will notably include share pledges over the two holding companies Medi-Partenaires and Sante Partenaires.

The provisional B3 rating on notes, one notch below the corporate family rating, reflects structural subordination to other liabilities in the capital structure, the agency said.

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