S&P rates AMT TopCo, facilities B-

S&P said it assigned B- ratings to AMT TopCo LLC and its planned $320 million of senior secured facilities. The recovery rating is 3, reflecting an expectation of meaningful recovery (50%-70%; rounded estimate 65%) in default.

AMT is owned by One Equity Partners. It will become the parent company of Gordian Medical Inc. (American Medical Technologies), which is acquiring RestorixHealth.

The company will finance the transaction with the facilities' proceeds, incremental cash equity from the sponsor and Restorix rollover equity. Gordian and RXH Acquisition Corp. will borrow the facilities.

“Our ratings on AMT reflect the company's narrow focus on wound care, its inherent exposure to Medicare reimbursement risk and changes in third-party payments and uncertainties about the long-term trend in outsource wound care,” S&P said in a press release.

The outlook is stable, mirroring an expectation the company will post mid-single-digit percent revenue growth, maintain steady margins and generate moderate free cash flow, the agency said.

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