S&P rates Radiology Partners loans B, CCC+

S&P said it assigned its B corporate credit rating to Radiology Partners Holdings LLC. The outlook is stable.

At the same time, the agency assigned its B issue-level rating to Radiology Partners Inc.'s senior secured first-lien credit facility, consisting of a $150 million revolver, $680 million term loan and $220 million delayed-draw term loan.

The 3 recovery rating indicates an expectation for meaningful (50%-70%; rounded estimate: 55%) recovery in the event of default.

The agency also assigned its CCC+ issue level rating to the company's $240 million second-lien term loan and $75 million delayed-draw second-lien term loan. The 6 recovery rating indicates negligible (0% to 10%; rounded estimate: 0%) recovery.

Proceeds from the senior debt will be used to fund acquisitions and to refinance existing debt.

S&P said it expects that the company will generate 6%-8% growth and sustain margins around 18%-20% through a mix of organic and acquisitive growth, but that leverage will remain over 7 times for the next few years given the company's appetite for growth.

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