Moody’s gives Envision Healthcare loans Ba1, B1

Moody's Investors Service said it assigned a B2 corporate family rating and B2-PD probability of default rating to Enterprise Merger Sub Inc., which will immediately become Envision Healthcare Corp. once a pending LBO transaction is completed.

The agency also assigned a Ba1 rating to the company's new $550 million asset-based loan facility and B1 ratings to its senior secured first-lien credit facilities. These include a $300 million revolving credit facility and $5.05 billion term loan.

The outlook is stable.

Proceeds from the debt will be used in conjunction with new equity and additional unsecured debt to fund the LBO of Envision by Kohlberg Kravitz Roberts & Co.

Envision's corporate family rating reflects the company's very high pro forma financial leverage and an expectation for aggressive financial policies, Moody’s said.

The agency said it expects Envision's pro forma adjusted debt to EBITDA, about 7.2 times, to decline to the low 6 times range during the next 12 to 18 months.

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