Moody’s rates eResearch loan B2

Moody’s Investors Service said it gave eResearch Technology Inc.’s planned $50 million incremental first-lien senior secured delayed-draw term loan due 2027 a B2 rating.

The agency also confirmed the B2 rating of the senior secured first-lien revolver and senior secured first-lien term loan, which has been upsized by $750 million. The confirmation concludes the downgrade review started on Dec.11, following the company’s announcement it agreed to merge with BioClinica, Moody’s said.

Proceeds from the new and upsized loans, an incremental $150 million second-lien term loan and a $50 million second-lien delayed draw term loan with an equity contribution will fund the merger. Both second-lien loans are unrated.

Moody’s revised the outlook to stable from under review. The outlook reflects Moody’s expectations ERT will successfully integrate BioClinica and generate mid-single-digit revenue growth and solid cash flows, helping the company lower leverage and maintain good liquidity, the agency said.

Moody’s also confirmed ERT’s B3 corporate family rating.

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