S&P assigns HAH loans B-, CCC

S&P said it gave HAH Group Holding Co. LLC (Help at Home LLC) and its first-lien facility B- ratings. The facility consists of a $74 million revolving credit facility, a $440 million first-lien term loan, a $75 million first-lien delayed-draw term loan (undrawn), and a $65 million first-lien delayed-draw term loan (undrawn). The recovery rating is 3, which indicates an expectation for meaningful recovery (50%-70%; rounded estimate: 55%) of principal in a default. The agency also assigned a CCC rating a 6 recovery rating to its $165 million second-lien term loan.

HAH is being acquired by Centerbridge Partners LP and The Vistria Group LP for $1.4 billion.

“Our ratings on Help at Home reflect the company’s narrow focus, significant geographic concentration, and exposure to state Medicaid programs. The home care services industry is highly fragmented, with below-average profitability compared with other sectors of the health services industry,” S&P said in a press release.

The weaknesses are offset by the company’s scale, market leadership position, and record for quality, the agency said.

The outlook is stable.

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