Moody's assigns Solis B3

Moody's Investors Service said it assigned a B3 corporate family rating and B3-PD probability of default rating to SM Wellness Holdings, Inc. (Solis Mammography). Moody's also assigned B2 senior secured ratings to the company's proposed $300 million first-lien term loan and $50 million delayed-draw term loan, both due 2028 as well as the $25 million revolving credit facility due 2026, and a Caa2 rating to the planned $100 million second-lien term loan due 2029. The outlook is stable.

Solis's B3 corporate family rating is constrained by leverage sustained above 7x through 2021, a small scale of about $150 million in revenues on a proportionate basis as of the last 12 months ending December 2020, and geographic concentration in Texas, among other factors.

“Solis' first-lien facilities, consisting of a $300 million first-lien term loan, $50 million delayed-draw term loan (both due 2028) and $25 million revolving credit facility due 2026, are rated B2, one notch above the B3 CFR, reflecting a higher recovery in the capital structure. The $100 million second-lien term loan due 2029 is rated two notches below the CFR, at Caa2, reflecting its junior position behind the first-lien debt. The debt is guaranteed by the holding company SM Intermediate, Inc. and wholly-owned subsidiaries,” Moody’s said in a press release.

The stable outlook reflects Moody's expectation of deleveraging towards 7x while maintaining adequate liquidity.

© 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.