Moody’s rates Imprivata, loans B2

Moody’s Investors Service said it gave B2 ratings to Imprivata Inc. and its proposed $755 million senior secured first-lien bank credit facility, consisting of a $715 million term loan B and $40 million revolving credit facility. Also, Moody’s assigned a B2-PD probability of default rating.

“Imprivata’s B2 CFR reflects the company’s high financial leverage, which we estimate to be around 6x pro forma for the debt issuance for the last twelve months ended Sept. 30, 2020, as well as the company’s small scale and limited end-market diversification,” Moody’s said in a press release.

Proceeds will go towards funding a pending acquisition, a $420 million distribution to equity holders, with the remaining proceeds going towards repaying debt and paying fees and expenses associated with the transactions.

The outlook is stable. “The stable outlook reflects Moody’s expectation that Imprivata will achieve mid-single-digit percent revenue growth over the next 12-18 months despite the current economic recession,” the agency said.

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