Moody's gives Option Care notes B3

Moody's Investors Service said it assigned a B3 rating to the senior unsecured notes being issued by Option Care Health, Inc. There are no changes to Option Care's ratings including the B1 corporate family rating, B1-PD probability of default rating and planned Ba3 senior secured first-lien term loan rating due in 2028. The speculative grade liquidity rating remains an SGL-1.

“The B3 rating on the proposed senior unsecured notes represents the junior position of the notes in the capital structure. The proposed senior secured term loan is secured by a first-priority interest in substantially all assets of the borrower and guarantors, other than the ABL collateral. The term loan has a second lien on the ABL collateral. The first-lien facilities benefit from the loss absorption provided by the proposed $500 million senior unsecured notes. The notes have a second lien on all term loan collateral, and a third lien on the ABL collateral,” Moody’s said in a press release.

The proceeds will be used to repay the first-lien term loan in conjunction with the previously announced new first-lien term loan and cash from the balance sheet. The outstanding first-lien loan’s B2 rating is unchanged, Moody’s said, and is expected to be withdrawn once it is repaid.

The outlook remains stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.