S&P rates ExamWorks loan B

S&P said it assigned its B issue-level rating to ExamWorks Group Inc.'s repriced first-lien term loan facility. The recovery rating is 3.

The pricing on the first-lien loan moves to Libor plus 325 basis points from Libor plus 375 bps.

S&P said the 3 recovery rating indicates expectations of meaningful (50%-70%, at the lower end of the range) recovery in default. The issue-level rating on the second-lien notes remains CCC+ with a recovery rating of 6, indicating expectations of negligible (0%-10) recovery in default.

The corporate credit rating on ExamWorks is B, and the outlook is stable.

“We continue to expect leverage to remain over 7x and funds from operations (FFO) to debt to stay in the single-digit range through 2018, following the company's leveraged buyout by Leonard Green & Partners LP in June 2016,” S&P said in a news release.

“Despite the company's leverage profile, we project ExamWorks to generate single-digit revenue growth, maintain double-digit margins, and produce double-digit cash flows through 2018 as the company continues to leverage its leading market position in its four primary markets.”

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