Moody's assigns B3 to U.S. Acute Care notes

Moody's Ratings said it assigned a B3 rating to U.S. Acute Care Solutions, LLC's proposed $800 million offering of senior secured notes due in 2029.

The company intends to use the net proceeds from this offering to repay the existing senior secured notes due 2026 and the outstanding balance on the first-lien secured revolving credit facility (not rated).

Concurrently with the proposed senior secured notes offering, the company also plans to upsize existing revolver capacity to $170 million from $125 million and extend the revolver maturity to 91 days before the maturity of the proposed senior secured notes.

Moody's also affirmed the company’s B3 corporate family rating and B3-PD probability of default rating, and the outlook was maintained at stable.

“The affirmation reflects reduced refinancing risk as the proposed transaction will push debt maturities to 2029. Moody’s estimates that the company’s financial leverage will remain in the low-to-mid 5.0 times range after the proposed refinancing transaction closes,” Moody’s said in a news release.

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