Moody’s assigns Netsmart facilities B3

Moody’s Investors Service said it assigned a B3 rating to Netsmart Inc.’s proposed facilities, including a first-lien senior secured revolver (expected to remain undrawn) and a first-lien senior secured term loan.

“The ratings for the first-lien senior secured facilities incorporate Netsmart’s overall probability of default, reflected in the B3-PDR, and the loss given default assessment for the individual instruments. The first-lien senior secured credit facilities, consisting of a $100 million revolver maturing 2025 and a $915 million term loan due 2027, are rated B3 with a loss given default assessment of LGD3. The instrument ratings are in line with the B3 CFR, reflecting the lack of subordinated debt in the first-lien capital structure to absorb losses,” Moody’s said in a press release.

Proceeds will be used to repay outstanding term loans in full and to prefund an acquisition. Moody’s said it will withdraw those ratings once the loans are repaid.

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