Moody's rates BioScrip notes B3

Moody's Investors Service said it assigned a B2 corporate family rating to BioScrip, Inc. and a B3 (LGD5, 76%) senior unsecured note rating, Ba3 (LGD2, 28%) secured bank facility ratings and an SGL-2 speculative grade liquidity rating.

The outlook is stable.

Proceeds will be used to acquire Critical Homecare Solutions Holdings, primarily a home infusion provider, for about $340 million in stock and cash as well as pay down existing debt.

The B2 corporate family rating reflects BioScrip's relatively small size as a provider of specialty pharmacy services, the agency said.

The B2 rating reflects relatively high leverage and minimal free cash flow relative to debt, the agency noted.

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