Moody's affirms Radiology Partners on add-on

Moody's Investors Service said it affirmed the B2 (LGD 3) ratings on the senior secured first-lien term loan and senior secured revolving credit facility of rating of Radiology Partners, Inc.

The agency also said it affirmed the Caa2 rating on the company's second-lien term loan.

The ratings follow news of the company's proposed $365 million add-on to its existing $800 million senior secured first-lien term loan.

The proceeds will be used to fund the recently announced acquisitions of Austin Radiological Association and Desert Radiology, pay down borrowings under the revolving credit facility and cover transaction costs, Moody's said.

The agency said it moved the location of the B3 corporate family rating, B3-PD probability of default rating and stable outlook from the parent and guarantor, Radiology Partners Holdings, LLC, to the borrowing entity, Radiology Partners.

This change places those ratings at the highest entity in the capital structure with rated debt, Moody's explained, and does not signify any change in the group's credit profile.

After executing the acquisitions, the company will grow its revenues significantly in 2019, the agency added.

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