S&P rates MJH, loans B-

S&P said it gave B- ratings to MJH Healthcare Holdings LLC (MJH Life Sciences) and its planned $650 million first-lien secured term loan B and $75 million first-lien secured revolver, undrawn at close. The recovery rating on the loans is 3.

BDT Capital Partners agreed to acquire MJH Life Sciences and will fund the transaction with the term loan, common equity and preferred equity.

“We assigned our B- issuer credit rating to MJH, reflecting our expectation for lease- and preferred share-adjusted leverage above 10x in fiscal 2022, which translates to leverage excluding preferred shares in the mid-to-high 5x range, and discretionary cash flow to debt of 2%-3% in 2022,” S&P said in a press release.

The outlook is stable.

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