Accendra Health has finalized the settlement of its exchange offers, swapping its outstanding 4.5% senior notes due 2029 and 6.625% senior notes due 2030 for new 9% senior secured first-lien notes maturing in 2032 and 9.75% senior secured second-lien notes maturing in 2033. The company issued or expects to issue $539.25 million in first-lien notes, including new money notes, while second-lien notes are projected at approximately $698.1 million. S&P Global Ratings affirmed Accendra's B issuer rating and revised its outlook from negative to stable, assigning a B+ rating to the first-lien notes with strong recovery prospects and a CCC+ rating to the second-lien notes with minimal recovery expectations. The outlook reflects near-term earnings pressure from acquisition and separation costs and the loss of a large commercial contract, balanced by improving credit metrics, with adjusted leverage trending toward 5x and free operating cash flow to debt expected to exceed 3%.
Accendra Health IncCompleted debt exchange and issued new notes, with S&P affirming B rating and revising outlook to stable, indicating improved credit profile.