U.S. Acute Care Solutions, LLC: Covenant Quality Post-Sale Snapshot: $800m 9.750% Senior Secured Notes due 2029

U.S. Acute Care Solutions, LLC: Update to credit analysis - Credit Opinion – 2024/05/02 – US$ 250.00 – ...U.S. Acute Care Solutions, LLC's ("USACS") credit profile reflects its strong market position as an emergency department physician staffing provider, moderately high financial leverage, and aggressive financial policy including the execution risk associated with an active, debt- funded acquisition strategy. Further, USACS has some geographic concentration with Texas, Maryland and Ohio representing a sizeable portion of business volumes. The credit profile incorporates the benefits of USACS' ownership model, in which the physicians own over 95% of the company and control its board. We also incorporate the event risk posed by a sizeable portion of preferred equity funding in the company's capital structure in our credit analysis. The callability of preferred shares, along with provisions related to dividend escalation, makes it likely that the company could replace its preferred shares, at least partially, with debt in the next 3-4 years, thereby increasing financial leverage....

Moody's Ratings assigns B3 rating to U.S. Acute Care Solutions, LLC's proposed senior secured notes, affirms B3 CFR, outlook stable - Rating Action – 2024/04/29 – US$ 180.00 – ...MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT...

U.S. Acute Care Solutions, LLC: Update to credit analysis following rating downgrade - Credit Opinion – 2023/10/04 – US$ 250.00 – ...U.S. Acute Care Solutions, LLC's ("USACS") credit profile reflects its strong market position as an emergency department physician staffing provider, moderately high financial leverage, and material execution risk associated with an active debt-funded acquisition strategy. Further, USACS has some geographic concentration with Texas, Maryland and Ohio representing a sizeable portion of business volumes. The credit profile incorporates the benefits of USACS' ownership model, in which the physicians own over 98% of the company and control its board. In our credit analysis, we incorporate the event risk posed by a sizeable portion of preferred equity funding in the company's capital structure. The high cost of this preferred equity capital makes it very likely that will need to replace preferred stock with alternative financing at the same time that it refinances its senior secured debt....

Moody's downgrades U.S. Acute Care Solutions, LLC's CFR to B3 from B2, outlook stable - Rating Action – 2023/09/26 – US$ 180.00 – ...MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT...

U.S. Acute Care Solutions, LLC: Update to credit analysis - Credit Opinion – 2023/01/31 – US$ 250.00 – ...U.S. Acute Care Solutions, LLC's ("USACS") credit profile reflects its market position as one of the four largest emergency department physician staffing providers in the US, moderately high financial leverage, and material execution risk associated with an active debt-funded acquisition strategy. Further, USACS has some geographic concentration in Texas, Maryland, California and Ohio. We estimate that the company's debt/EBITDA was approximately 4.7x at the end of September 2022. The credit profile incorporates the benefits of USACS' ownership model, in which the physicians own over 90% of the company and control its board. In our credit analysis, we incorporate the event risk posed by a sizeable portion of preferred equity funding in the company's capital structure. The high cost of this preferred equity capital makes it very likely that the company will replace its preferred shares with debt, thereby increasing financial leverage, in the next 1-3 years....