S&P rates CHG loans B

S&P said it assigned B issue-level and 3 recovery ratings to CHG Healthcare Services Inc.’s $150 million revolving credit facility due 2026 and $1.58 billion first-lien senior secured term loan due 2028. The 3 recovery rating indicates an expectation for meaningful (50%-70%; rounded estimate: 60%) recovery in the event of default.

CHG also plans to privately sell $430 million of second-lien notes due 2029.

CHG will use the proceeds and cash on hand to refinance debt of about $1.71 billion and fund a $560 million dividend.

Concurrently, the agency affirmed CHG’s B issuer rating.

The outlook remains stable.

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