Moody's assigns Careismatic DIP loan Ba3

Moody's Ratings said it assigned a Ba3 rating to New Trojan Parent, Inc.'s (Careismatic) $125 million senior secured super-priority debtor-in-possession term loan.

The loan along with balance sheet cash will be used to fund the company through the Chapter 11 process which started on Jan. 22. The company plans to emerge from bankruptcy about 120 days after the bankruptcy filing.

Moody’s withdrew its ratings for the company after Careismatic filed for bankruptcy.

“The Ba3 rating assigned to Careismatic's DIP facility primarily reflects the estimated strong collateral coverage of the loan as well as structural considerations including upstream and downstream guarantees, priority of liens, the nature of the collateral, and the covenants. Other considerations include the nature of the bankruptcy as the filing was precipitated by weak operating performance and that the reorganization requires reinvestment in the business and could be challenging to execute. Lastly, the rating reflects the size of the DIP relative to pre-petition debt,” the agency said in a press release.

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