S&P assigns nThrive loans B, CCC

S&P said it assigned MedAssets Software Intermediate Holdings Inc.’s (nThrive Inc.) planned $1.265 billion first-lien loan B issue-level and 3 (50%-70%; rounded estimate: 65%) recovery ratings and its expected $460 million second-lien loan CCC issue-level and 6 (0%-10%; rounded estimate: 0%) recovery ratings, indicating an expectation of negligible recovery in default.

The company plans to use the loans to help buy TransUnion Healthcare Inc. for $1.735 million, nearly doubling the size of the company.

“Following the transaction, S&P Global Ratings-adjusted leverage will increase to over 12x in 2022, including $460 million of preferred equity as debt, before declining to about 11x in 2023. Leverage excluding the preferred equity is about 9.5x and 8.5x for 2022 and 2023, respectively,” S&P said in a press release.

However, the agency affirmed nThrive’s ratings, including the B- issuer rating.

The outlook is stable.

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