Moody’s rates Onex TSG upsized loan B1

Moody's Investors Service said it extended the B1 rating on Onex TSG intermediate Corp.'s (indirect parent of Schumacher Group) senior secured first-lien term loan to the upsized facility.

The facility is being upsized to roughly $529 million from $399 million.

The incremental $130 million will fund the acquisition of ECI Healthcare Partners, a provider of emergency medicine, hospitalist and urgent care physician practice management.

Despite a slight increase in leverage, Moody's said it views the acquisition as modestly credit positive due to the significantly broadened footprint, particularly in the mid-west, with the addition of almost 2 million annual patient visits.

Pro forma for the transaction, the agency expects adjusted debt to EBITDA including synergies to be about 5.4 times for the period ended Dec. 31, 2015, compared to reported leverage of 5.3 times.

Over the next 12 to 18 months Moody's expects financial leverage to remain in the low 5 times range.

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