Moody's: MedSolutions loans B2

Moody's Investors Service said it assigned a B2 corporate family rating and a B2-PD probability of default rating to MedSolutions Holdings, Inc. and B2 (LGD3, 49%) ratings to the company's proposed first-lien senior secured credit facilities, including a $360 million term loan B due 2019 and a $75 million revolving credit facility due 2018. The outlook is stable.

The proceeds from the credit facilities will be used to refinance all of the company's existing debt and to fund a one-time $225 million special dividend to existing shareholders.

The agency said MedSolutions' B2 corporate family rating reflects the company's very high revenue concentration among its top customers and products, material exposure to near-term contract expirations, relatively high financial leverage and aggressive financial policy and shareholder-oriented strategy.

The ratings are supported by the company's leading scale and market position in the specialty benefit management market, solid customer relationships, lack of direct reimbursement risk and favorable fundamentals and macro trends within the specialty benefit management market, Moody's said.

On a pro forma basis for the 12 months ended March 31, MedSolutions' adjusted debt-to-EBITDA ratio was 4.2 times, according to Moody's.

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