S&P rates MultiPlan B+

S&P said it assigned a B+ rating to MultiPlan Corp. and its subsidiary MPH Acquisition Holdings LLC’s new $2.47 billion first-lien term loan due 2027. The recovery rating is 3, indicating an expectation for meaningful recovery (50%-70%; rounded estimate: 55%) in the event of a payment default.

The agency also assigned a B- to MPH’s new $1.2 billion of senior unsecured notes due 2028. The recovery rating is 6, indicating an expectation for negligible recovery (0%) in the event of a payment default.

Proceeds will be used to refinance the company’s entire debt structure.

The agency assigned MultiPlan a stable outlook and revised the outlook to stable from negative on MultiPlan’s subsidiaries based on lower debt and a forecast for better revenue and EBITDA generation. S&P said also affirmed its ratings for MPH and Polaris Intermediate Corp. and withdrew Polaris’ ratings at Multiplan’s request.

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