Moody's gives Opal CFR B3; loans B1, Caa2

Moody's Investors Services said it assigned a B3 corporate family rating and B3-PD probability of default rating to Opal Acquisition, Inc., the indirect parent of One Call Medical, Inc.

At the same time, the agency assigned B1 (LGD 3, 30%) ratings to the company's proposed first-lien senior secured credit facilities, including an $825 million senior secured first-lien term loan and a $100 million senior secured first-lien revolver.

Moody's also assigned a Caa2 (LGD 5, 81%) rating to the company's proposed $420 million senior secured second-lien term loan.

The proceeds from the senior secured credit facilities, along with an equity contribution from funds advised by Apax Partners and management rollover equity, will fund Apax's buyout from the current owner Odyssey Investment Partners, refinance existing debt, and pay transaction fees and expenses.

The outlook is stable.

"The B3 corporate family rating reflects Opal NewCo's very high financial leverage resulting from the sizeable amount of debt that will be used to fund the acquisition of the company," Moody's analyst Daniel Goncalves said in a news release. "However, the company's credit profile benefits from its leading market presence within the workers' compensation cost-containment services industry."

© 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.