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Moody's: IMS Health loans Ba3
Moody's Investors Service said it assigned a Ba3 (LGD 3, 31%) rating to the proposed $2 billion amended term loan and $375 million amended revolver of IMS Health Inc.
The agency also said it affirmed the B1 corporate family and probability of default ratings, along with its $275 million secured revolving credit facility expiring 2015 at Ba3 (LGD 3, 31%) and $1.9 billion secured term loan due 2016 at Ba3 (LGD 3, 31%). The ratings on the loans will be withdrawn upon completion of the refinancing.
Also affirmed includes the company's $1 billion senior unsecured notes due 2018 at B3 (LGD 5, 85%), the agency said.
The outlook is stable.
In January, IMS announced the pending acquisition of SDI Health, Inc. for $340 million, Moody's said.
The amendment to the existing credit facility is expected to reduce the interest spread and LIBOR floor, extend maturity dates, eliminate the interest coverage ratio and relax step-downs of the leverage ratio, the agency said.
The ratings are constrained by revenue concentration with large branded pharmaceutical customers, reliance on a group of large data suppliers, moderately high leverage and the potential for regulatory changes to limit product and service offerings, Moody's said.
The ratings are supported by the company's leading market position in the pharmaceutical intelligence sector, diverse product offerings, substantial geographic diversity and improving revenues, the agency said.
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