S&P rates Apria notes BB

Standard & Poor's said it assigned a BB issue-level rating with a recovery rating of 2 to Apria Healthcare Group Inc.'s proposed $1.01 billion senior secured notes due 2014.

The ratings remain on CreditWatch with negative implications, where they were placed in June after the leveraged buyout of the company by financial sponsor Blackstone Group was announced. The agency said the corporate credit rating will be lowered to BB- from BB+ if the transaction closes as currently structured.

Proceeds from the notes will be used to finance the acquisition of the company by Blackstone, which is expected to close in the fourth quarter.

The agency said the ratings reflect the company's aggressive leverage, exposure to third-party reimbursement and pricing decisions and the challenges of managing the integration of Coram Inc. and implementing a number of strategic initiatives.

These risks are partially outweighed by Apria's leading position in providing specialized home health-care services and equipment, its history of generating significant cash flows and its increasingly diverse business and payor mix, S&P 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.