Research Update: Ensemble RCM LLC Assigned 'B' Ratings; Outlook Stable

On May 29, 2019, Ensemble RCM LLC, a technology-enabled provider of revenue cycle management (RCM) services to health care providers, announced that Cincinnati-based Bon Secours Mercy Health (BSMH) will sell 51% of the equity in Ensemble to Golden Gate Capital, retaining 48% of ownership. The proposed debt structure will consist of a $75 million first-lien revolver (undrawn at closing) and a $672 million senior secured first-lien term loan. We assigned our 'B' issuer credit rating to Ensemble RCM LLC. We also assigned our 'B' issue-level rating and '3' recovery rating to the company's proposed first-lien credit facility. The stable outlook reflects our expectation of adjusted leverage of 4x-5x, and revenue growth in the low- to mid-teens percent range for the

...+ On May 29, 2019, Ensemble RCM LLC, a technology-enabled provider of revenue cycle management (RCM) services to health care providers, announced that Cincinnati-based Bon Secours Mercy Health (BSMH) will sell 51% of the equity in Ensemble to Golden Gate Capital, retaining 48% of ownership. + The proposed debt structure will consist of a $75 million first-lien revolver (undrawn at closing) and a $672 million senior secured first-lien term loan. + We assigned our 'B' issuer credit rating to Ensemble RCM LLC. We also assigned our 'B' issue-level rating and '3' recovery rating to the company's proposed first-lien credit facility. + The stable outlook reflects our expectation of adjusted leverage of 4x-5x, and revenue growth in the low- to mid-teens percent range for the next two years based on new client wins and revenue growth from existing clients....

Research Update