S&P rates Emdeon B, loans BB-, notes CCC+

Standard & Poor's said it assigned a preliminary B corporate credit rating to Emdeon Inc. and a preliminary BB- rating and preliminary 1 recovery rating to its proposed $125 million senior secured revolving credit facility due 2016 and $1.2 billion senior secured term loan due 2018.

The outlook is stable.

S&P also assigned a preliminary CCC+ rating and a recovery rating of preliminary 6 to Emdeon's proposed $375 million senior unsecured notes due 2019.

The agency also said it affirmed the B+ rating on Emdeon Business Services LLC and removed the rating from CreditWatch, where it was placed with negative implications in August.

The ratings on Emdeon Business Services will be withdrawn upon completion of the acquisition.

The outlook is stable.

The ratings reflect Emdeon's highly leveraged financial risk profile and its private-equity ownership structure, which is likely to preclude sustained deleveraging, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.