S&P rates MultiPlan facility B+

Standard & Poor's said it assigned its B+ counterparty credit rating to MultiPlan Inc. and assigned its B+ senior secured debt rating to MultiPlan's $200 million senior secured credit facility.

The credit facility will consist of a $180 million five-year, two-part term loan arrangement and a $20 million five-year revolver. In conjunction with this transaction, the company is also raising $144.7 million in preferred equity from GA Partners, a private equity firm, which cannot be redeemed until six months after the above-mentioned bank credit facilities have been repaid.

The outlook is positive.

MultiPlan is expected to use the proceeds to fund its acquisition of the U.S. Health division of BCE Emergis, which was announced on Jan. 2.

"The ratings on New York-based MultiPlan, a preferred provider organization, reflect Standard & Poor's assessment of the company's highly leveraged capital structure (when preferred equity is counted as debt), narrow product scope, relatively small revenue base, and customer concentration," noted S&P credit analyst Joseph Marinucci.

"The ratings also reflect the company's established presence in its market segment, very strong adjusted earnings profile, experienced management team, and technological sophistication."

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