Moody’s rates ExamWorks B2, loans B1

Moody's Investors Service said it assigned a B2 corporate family rating and a B2-PD probability of default rating to Electron BidCo Inc., which does business as ExamWorks.

“The ratings are being assigned in conjunction with the pending leveraged buyout of the company,” the agency said in a news release.

At the same time, Moody's assigned a B1 rating to ExamWorks' proposed first-lien senior secured credit facilities, consisting of a $1.7 billion term loan due 2028 and a $250 million revolver expiring in 2026.

The outlook is stable.

“The B2 CFR reflects the company's aggressive financial policies given the significant increase in pro forma Moody's-adjusted debt to EBITDA to 7.6x from approximately 5.8x at June 30, following the leveraged buyout,” the agency said.

“Supportive rating factors include the company's proven track record of deleveraging through EBITDA growth, good cash flow generation (in the range of $70 million to $80 million per year), leading market share of the independent medical examination industry, and growing EBITDA margins.”

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