S&P rates Signify Health loans B

S&P said it assigned Signify Health LLC's planned $185 million senior secured revolver and planned $350 million term loan B issue-level and 3 recovery ratings. The 3 recovery rating indicates an expectation for meaningful (50%-70%; rounded estimate: 50%) recovery in default.

“We expect the company will replace the existing $80 million revolver with the proposed $185 million revolver and use the new term loan combined with cash on hand to repay its existing $411 million term loan as well as related fees and expenses,” S&P said in a press release. Both outstanding loans are rated B with 3 recovery ratings.

“We expect leverage to be below 4x for the next two years and discretionary cash flow around $45 million for 2021 and $20 million for 2022,” the agency said.

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