Moody’s rates Bracket loans B2

Moody's Investors Service said it assigned ratings for Bracket Intermediate Holding Corp., including a B3 corporate family rating and a B3-PD probability of default rating.

The agency also assigned B2 ratings to the company's proposed $545 million senior secured first-lien term loan and $40 million revolver.

The outlook is stable.

Net proceeds will be used to partially finance the acquisition of CRF Health Group Ltd. as well as to refinance the company's existing debt capital.

"Bracket is a relatively small player in the nascent and fragmented medical research services segment, even after its pending acquisition of CRF Health and notwithstanding its high EBITDA margins and good free cash flow generation," Vladimir Ronin, Moody's lead analyst for the company, said in a news release.

“We estimate that initial leverage (measured as Moody's-adjusted debt-to-EBITDA) will also be very high, at about 7.4 times.”

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