Moody’s: CDRH unchanged by revolver extension

Moody's Investors Service said CDRH Parent, Inc.'s (Healogics, Caa1 stable) amendment of its $100 million revolving credit facility that extends the expiration date by roughly two years to July 2021 does not affect the company’s ratings at this time.

The agency said the ratings are unaffected as leverage remains very high at roughly 9 times for the 12 months ended March 31, and free cash flow, while improving, remains negative.

However, Moody’s said it views the extension as credit positive, pushing out the company's nearest debt maturity.

As part of the amendment, the size of the revolver will decrease to $82.5 million effective July 2019, but the facility is still of material size relative to the company's scale, based on its annual revenues of about $425 million, Moody’s said.

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