The $792 million Surgery Partners and Symbion deal is expected to close in the fourth quarter of this year, according to a Tampa Bay Business Journal report. Here are three things to know about Surgery Partners' company outlook, as forecasted by credit rating agencies.
• Surgery Partners cast aside a plan to issue $100 million of holding company debt to finance the acquisition. Instead, the company will increase the size of two term loans, according to the report.
• Standard & Poor's Ratings Service gave the company a stable outlook, a "B" rating. S&P predicts moderate cash flow and stable margins, but mentioned the risk of integration on such a large scale.
• Moody's Investors Services gave Surgery Partners a 'B3' rating. Moody's attributed its rating to the company's high level of debt, but offered a positive outlook on the company's place in a growing industry.
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• Surgery Partners cast aside a plan to issue $100 million of holding company debt to finance the acquisition. Instead, the company will increase the size of two term loans, according to the report.
• Standard & Poor's Ratings Service gave the company a stable outlook, a "B" rating. S&P predicts moderate cash flow and stable margins, but mentioned the risk of integration on such a large scale.
• Moody's Investors Services gave Surgery Partners a 'B3' rating. Moody's attributed its rating to the company's high level of debt, but offered a positive outlook on the company's place in a growing industry.
More Articles on Transactions and Valuation Issues:
5 Hospitals Planning or Opening ASCs
AmSurg Completes $2.35B Sheridan Acquisition
Foundation Healthcare Refinances Debt