S&P lowers Sheridan Healthcare outlook to negative, rates loans B, CCC+

Standard & Poor's said it affirmed its B corporate credit rating on Sheridan Healthcare Inc.

The agency said that the outlook was revised to negative from stable.

This action reflects the anticipated increase in debt due to the leveraged buyout of the company by Hellman & Friedman, which will raise lease-adjusted leverage to about 7.5 times, the agency added.

At the same time, S&P said it assigned its loan and recovery ratings to Sheridan's proposed $620 million senior secured credit facilities, consisting of a $75 million first lien revolving credit facility maturing 2013, a $375 million first lien term loan B maturing 2014, and a $170 million second-lien payment-in-kind toggle term loan maturing 2015, adding that the first-lien facilities are rated B with a recovery rating of 3.

The agency said that the second-lien loan was rated CCC+ with a recovery rating of 5.

According to S&P, the B corporate credit rating reflects Sheridan's narrow operating focus, payor concentration, and geographic concentration and it also reflects the company's exposure to malpractice risk, the threat of increased competition, and Sheridan's high debt burden.

© 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.