S&P rates Physician Partners loan B+

S&P said it assigned B+ issue and 3 recovery ratings to the $150 million add-on first-lien term loan of Physician Partners LLC (Better Health Group) and changed the outlook to negative from stable.

The B+ issue-level rating and 3 recovery ratings on the company's $600 million first-lien term loan and $105 million revolver remain unchanged.

“Immediately after the $150 million in additional debt, S&P Global Ratings-adjusted debt leverage will increase to 7.4x, which is above the downgrade threshold for the rating. However, we expect leverage will decline to the mid-5x range in 2024 and below 5x by mid-2025, largely due to the maturation of Physician Partners' significant number of more recently opened offices, the continued growth of its base business and additional new offices and acquisitions of established offices,” the agency said in a statement.

The proceeds provide the company with funds to accelerate its expansion, through both de novo and acquisitions.

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