Moody's: Emdeon B2, loan Ba3

Moody's Investors Service said it assigned B2 corporate family and probability of default ratings to Emdeon Inc., along with provisional Ba3 (LGD 2, 29%) ratings to the proposed $1.2 billion senior secured term loan and $125 million senior secured revolving credit facility.

The proceeds from the term loan, along with $750 million of other unsecured debt and a $1.2 billion equity contribution by financial sponsors, will be used to fund the acquisition of the company by Blackstone Capital Partners VI for about $3.3 billion.

The outlook is stable.

Upon the close of the transaction, Moody's said it will withdraw the ratings of Emdeon Business Services, a subsidiary of Emdeon Inc., as the proposed debt securities are expected to reside at the parent level.

The ratings are supported by Emdeon's good liquidity profile and its position as one of the leading providers of revenue and payment cycle management with revenues of about $1.1 billion, the agency said.

The company has successfully maintained a stable and recurring revenue base, as well as a diverse base of customers, Moody's said.

© 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.