Moody's rates One Call notes Caa2

Moody's Investors Service said it assigned a Caa2 (LGD5, 85%) rating to the proposed $610 million senior notes to be issued by Opal Acquisition, Inc., the indirect parent of One Call Medical, Inc., and affirmed Opal's corporate family rating at B3, probability of default rating at B3-PD and $125 million senior secured first-lien revolving credit facility and $1.22 billion senior secured first-lien term loan at B1 (LGD3, 30%). The outlook is stable.

The proceeds of the term loan and new notes will be used to fund the acquisition of Align Networks (and subsequent merger with One Call) and to refinance Opal's $420 million senior secured second-lien term loan, which is rated Caa2 (LGD5, 81%).

The agency said the B3 corporate family rating reflects the company's very high financial leverage (8.1 times for the 12 months ended Sept. 30 on a pro forma basis), aggressive acquisition strategy and related integration risks, considerable concentration of revenues with its largest customers and relatively low profitability margins.

However, the company's credit profile benefits from its leading market positions within niche sub-segments of the worker's compensation market and modest regulatory or reimbursement risk, Moody's said, and the company is well-diversified by state.

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