Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers K > Headlines for KAH Hospice Co. > News item |
Moody's assigns KAH B3, loans B2, Caa2
Moody's Investors Service said it assigned a B3 corporate family rating and a B3-PD probability of default rating to Charlotte Buyer, Inc. (Kindred at Home Hospice or KAH Hospice). Concurrently, Moody's assigned B2 ratings to the company's planned $400 million revolving credit facility, $1.2 billion first-lien term loan, and $400 million term loan A. Moody's also assigned a Caa2 rating to the company's proposed $450 million second-lien term loan.
“The B3 CFR reflects KAH Hospice's modest size and scale, the presence of considerable competition in a highly fragmented industry and high initial Moody's adjusted debt to EBITDA of approximately seven times based on the LTM period ended Dec. 31, 2021, following the financing of a majority ownership stake by CD&R. The rating also reflects the risk arising from the company's predominantly narrow focus on providing hospice services and the high revenue concentration from Medicare, each accounting for over 80% of total revenue,” Moody’s said in a press release.
Private equity sponsor Clayton, Dubilier & Rice will use the proceeds and nearly $1.4 billion in new and rolled-over equity to fund the $3.4 billion purchase of a 60% stake in KAH and pay related fees and expenses. Humana will maintain a 40% stake in KAH Hospice.
The outlook is stable.
© 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.