Moody’s gives DuPage Medical facilities B1, Caa1

Moody's Investors Service said it assigned a B2 corporate family rating and B2-PD probability of default rating to ACOF V DP Acquiror LLC, which on deal close will become Midwest Physician Administrative Services, LLC (DuPage Medical Group).

The agency also assigned B1 ratings to the company's proposed $60 million revolving credit facility and $430 million first-lien term loan and a Caa1 rating to the proposed $190 million second-lien term loan.

The outlook is stable.

Proceeds from the facilities as well as about $889 million of new equity (which represents around 59% of the purchase price) provided by funds associated with Ares Management and rollover equity from existing management and physician owners will be used to acquire DuPage Medical Group.

Moody’s said the B2 corporate family rating reflects its expectations that Moody's-adjusted leverage will remain high at over five times following the LBO by funds associated with Ares Management.

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