Moody’s rates Value-Based Care, facilities

Moody's Investors Service said it assigned a B3 corporate family rating and B3-PD probability of default rating to VVC Holding Corp. (Value-Based Care Solutions, formerly GE Healthcare's Value Based Care Division).

Concurrently, the agency assigned a B2 rating to co-borrowers VVC Holding’s and WFM Holding Corp.'s proposed $600 million senior secured first-lien term loan and $75 revolving credit facility, and a Caa2 rating to the companies' proposed $175 million senior secured second-lien term loan.

Proceeds will be used to fund Veritas Capital's acquisition of the division from General Electric as well as transaction fees and expenses.

The outlook is stable.

Moody’s said the B3 corporate family rating reflects risks associated with the company's high initial financial leverage, with debt/EBITDA of about 6.3 times based on Dec. 31, 2017 results, pro forma for the transaction, excluding certain one-time expenses and treating capitalized software as an expense.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.