NEW YORK (S&P Global Ratings) Jan. 10, 2022--S&P Global Ratings today said that Summit Behavioral Healthcare LLC's proposed $150 million fungible incremental add-on to its existing first-lien term loan does not affect our 'B-' issue-level rating and '3' recovery rating on the facility. We expect the company to use the proceeds from the add-on, along with $30 million of equity from Patient Square Capital, to fund its acquisition of Strategic Behavioral Health, the operator of eight acute psychiatric hospitals across six states. The acquisition will increase the proportion of revenue from Summit Behavioral's acute psychiatric segment to about 50% of its total revenue from about 30% prior to the transaction. This acquisition is consistent with our view of the company's
