S&P rates Envision notes B

S&P said it assigned a B rating and 6 recovery rating to New Amethyst Corp.’s proposed $750 million senior unsecured notes due 2024.

The 6 recovery rating indicates 0 to 10% expected default recovery.

New Amethyst, which will be renamed Envision Healthcare Corp., is a wholly owned subsidiary of AmSurg Corp., S&P said, and will be the surviving entity of the proposed merger of Envision Healthcare Holdings Inc. and AmSurg.

The proceeds from the debt issuance, along with the proceeds from its previously announced new term loan B, will be used to help finance the pending the merger with AmSurg, S&P said.

The corporate credit rating on Envision Healthcare Holdings is BB- and the outlook is positive.

The ratings reflect the parent company's post-merger business profile, which is well established in its three business segments and will provide a variety of clinical network solutions that will account for more than 30 million patient encounters, S&P said.

The combined business will take advantage of the growth opportunities within the physician outsourcing industry, the agency added.

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