Moody's ups, rates Option Care loan Ba3

Moody's Investors Service said it upgraded Option Care Health, Inc.’s corporate family rating to B1 from B2 and its probability of default rating to B1-PD from B2-PD. Moody's assigned a Ba3 rating to the planned $600 million senior secured first-lien term loan. The B2 on the outstanding senior secured first-lien term loan is unchanged and the speculative grade liquidity rating, which remains an SGL-1.

Option Care plans to use the loan proceeds with balance sheet cash and proceeds from an anticipated unsecured debt issuance, to repay the outstanding first-lien term loan.

“The ratings upgrade reflects Moody's view that Option Care's leverage and credit metrics have improved significantly as the company benefits from accelerating preference toward home infusion care due in part to the coronavirus pandemic. At the close of the transaction, Moody's expects pro forma debt/EBITDA to be around 4x,” the agency said in a press release.

The outlook remains stable.

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