Moody’s: Surgical Care unaffected by upsized loan

Moody's Investors Service said that the increase in Surgical Care Affiliates, Inc.'s senior secured first-lien term loan to $593 million is modestly credit negative due to the temporary increase in financial leverage and reduction in interest coverage.

However, this transaction has no impact on Surgical Care’s ratings or stable outlook.

The incremental $150 million of add-on proceeds will be used to replenish liquidity used to fund $69 million of recent acquisitions and repay $10 million of existing revolver borrowings. Moody's expects the company to use the remaining $68 million after transaction fees to fund future acquisitions to further consolidate the independent surgical provider marketplace.

© 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.