Moody’s: RevSpring loan B2

Moody's Investors Service said it assigned a B3 corporate credit rating and B3-PD probability of default rating to Empower Payments Acquisition, Inc., formerly known as GTCR-RevSpring Acquisition, Inc. (RevSpring).

The agency also assigned a B2 rating to its senior secured first-lien revolving credit facility due 2021 and term loan due 2023, along with a Caa2 rating on its senior secured second-lien term loan due 2024.

The outlook is stable.

The proceeds of the term loans and $135.4 million of cash equity from affiliates of financial sponsor GTCR LLC will be used to purchase the company, pay transaction-related fees and expenses and add some cash to the balance sheet, Moody’s said.

The ratings reflect RevSpring's modest revenue scale of about $150 million, narrow operating scope focused in printing and mailing bills on behalf of health-care industry clients in the United States and related information services and high financial leverage with adjusted debt-to-EBITDA anticipated to remain at higher than 6x, the agency said.

The ratings are supported by the company’s customer retention rates, which are in the high 90% range, Moody’s said.

The company does have some customer concentration with more than 20% of 2015 revenues generated by its top ten customers and about 50% from the top 50, the agency said.

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