Fitch cuts nThrive loan

Fitch Ratings said it downgraded MedAssets Software Intermediate Holdings, Inc. (nThrive TSG) senior secured first-lien term loan rating to BB-/RR2 from BB/RR1.

Strong investor interest led the company to boost the term loan offering by $60 million with a $40 million reduction in the second-lien term loan offering. The added debt will be applied to the balance sheet helping liquidity.

“The rating action follows the evaluation of the updated financing package under Fitch’s recovery criteria and the determination that the increased first-lien leverage would reduce expected recoveries to 71% - 90% as compared to 91% - 100% under the original terms,” the agency said in a press release.

The downgrade affects about $500 million of to-be-issued debt.

The agency also affirmed nThrive’s B issuer rating and stable outlook.

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