Moody's; Vitera loans B2, Caa2

Moody's Investors Service said it assigned a first-time B3 corporate family rating and B3-PD probability of default rating to Lightning Acquisition, LLC, the holding company of Vitera Healthcare Solutions, LLC. Moody's also assigned B2 (LGD3, 36%) ratings to the first-lien senior secured revolving credit facility due 2018 and first-lien senior secured term loan due 2020 and a Caa2 (LGD5, 88%) rating to the second-lien senior secured term loan due 2021. The outlook is stable.

The proceeds of the new facilities will be used to fund the acquisition of EHS Holdings, Inc., to refinance existing debt and to put cash on the balance sheet.

The agency said the B3 corporate family rating reflects Vitera's small pro-forma revenue size of about $250 million and Moody's expectation for debt to EBITDA to remain near 6 times over the next 12 to 18 months. The proposed financing places $65 million of cash on the balance sheet, but Moody's expects most will be used for acquisitions in the near term.

© 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.