PointClickCare Technologies Inc. Assigned 'B+' Rating; Outlook Stable

Ontario, Canada-based health care technology company PointClickCare Technologies Inc. (PCC) plans to acquire Collective Medical Technologies (CMT) in an approximately $590 million transaction funded with equity and a $450 million term loan. Pro forma for the transaction, adjusted trailing 12 month leverage will be in the high-4x area, and we expect it to decline to the mid-to-low-4x area within 12 months. We are assigning a 'B+' issuer credit rating to PCC. The outlook is stable. At the same time, we are assigning a 'B+' issue-level rating and '3' recovery rating to the proposed $450 million first-lien credit facility and $100 million revolving credit facility. The stable outlook reflects our expectation for double-digit percent organic growth and improving EBITDA margins, resulting

...December 7, 2020 - Ontario, Canada-based health care technology company PointClickCare Technologies Inc. (PCC) plans to acquire Collective Medical Technologies (CMT) in an approximately $590 million transaction funded with equity and a $450 million term loan. - Pro forma for the transaction, adjusted trailing 12 month leverage will be in the high-4x area, and we expect it to decline to the mid-to-low-4x area within 12 months. - We are assigning a 'B+' issuer credit rating to PCC. The outlook is stable. At the same time, we are assigning a 'B+' issue-level rating and '3' recovery rating to the proposed $450 million first-lien credit facility and $100 million revolving credit facility. - The stable outlook reflects our expectation for double-digit percent organic growth and improving EBITDA margins, resulting in substantial free cash flow and leverage cushion to support continued growth investment while PCC maintains debt to EBITDA in the 4x-5x range. NEW YORK (S&P Global Ratings) Dec. 7,...

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