Moody's rates MedAssets loans Ba3, notes B3

Moody's Investors Service said it assigned B1 corporate family and probability-of-default ratings to MedAssets, Inc. as well as a Ba3 (LGD3, 32%) rating to the proposed senior secured credit facility and a B3 (LGD5, 86%) rating to the proposed senior unsecured note offering.

The outlook is stable.

Proceeds will be used to fund the $850 million acquisition of the Broadlane Group, Inc. and to refinance MedAssets' existing debt.

MedAssets' B1 corporate family rating reflects the significant leverage being taken on to complete the proposed acquisition of Broadlane, the agency noted.

Pro forma for the acquisition financing, MedAssets is expected to increase its funded debt by over four times.

The rating also reflects the risks associated with the fact that the proposed acquisition will be the largest completed by MedAssets to date.

Broadlane's operations represent a sound strategic fit by adding incrementally to MedAssets' existing service offerings in its spend management business and will increase scale and market presence, the agency added.

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