S&P rates Universal Health notes BBB-

S&P said it assigned its BBB- issue-level and 2 recovery ratings to Universal Health Services Inc.'s planned $1.2 billion of senior secured notes due 2026/2031. The BBB- issue-level rating on the $1.7 billion senior secured term loan A due 2026 is unchanged. The 2 recovery rating indicates an expectation for substantial (70%-90%; rounded estimate: 80%) recovery in default, down from 85% because of the increase in overall senior secured debt.

The company also intends to increase its revolving credit facility to $1.2 billion from $1 billion to provide additional liquidity.

UHS plans to use the proceeds to refinance its $1.85 billion term loan A due 2023, $488 million term loan B due 2025, $410 million of senior secured notes due 2026 and use the remaining amount to fund working capital and future acquisitions.

“We view this offering as leverage neutral and as a slight credit positive as it lowers its interest expense and extends the maturity profile,” the agency said in a press release.

© 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.