Research Update: Zelis Holdings L.P. Downgraded To 'B' On Dividend Recapitalization; Outlook Stable - S&P Global Ratings’ Credit Research

Research Update: Zelis Holdings L.P. Downgraded To 'B' On Dividend Recapitalization; Outlook Stable

Research Update: Zelis Holdings L.P. Downgraded To 'B' On Dividend Recapitalization; Outlook Stable - S&P Global Ratings’ Credit Research
Research Update: Zelis Holdings L.P. Downgraded To 'B' On Dividend Recapitalization; Outlook Stable
Published Oct 21, 2024
6 pages (2191 words) — Published Oct 21, 2024
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

Health care technology company Zelis Holdings L.P. (Zelis) plans to use proceeds from a new seven-year, $2.1 billion, first-lien term loan and cash on hand to fund a distribution to its shareholders. The transaction will weaken its credit metrics with pro forma financial leverage of 7.2x and EBITDA coverage of 2.1x, versus 3.5x and 4.9x previously, for the 12 months ended second-quarter 2024. We lowered our long-term issuer credit rating on Zelis and issue ratings on its existing debt to 'B' from 'B+'. We also assigned our 'B' issue rating to the company's new first-lien, $2.1 billion term loan due 2031. The stable outlook reflects our expectation that Zelis will sustain its strong operating performance and maintain its highly leveraged

  
Brief Excerpt:

...Health care technology company Zelis Holdings L.P. (Zelis) plans to use proceeds from a new seven-year, $2.1 billion, first-lien term loan and cash on hand to fund a distribution to its shareholders. The transaction will weaken its credit metrics with pro forma financial leverage of 7.2x and EBITDA coverage of 2.1x, versus 3.5x and 4.9x previously, for the 12 months ended second-quarter 2024. We lowered our long-term issuer credit rating on Zelis and issue ratings on its existing debt to 'B' from 'B+'. We also assigned our 'B' issue rating to the company's new first-lien, $2.1 billion term loan due 2031. The stable outlook reflects our expectation that Zelis will sustain its strong operating performance and maintain its highly leveraged capital structure through 2025....

  
Report Type:

Research Update

Issuer
Zelis Holdings L.P.
Sector
Global Issuers
Country
United States
Region
United States
Format:
PDF Adobe Acrobat
Buy Now

S&P Global Ratings’ Credit Research—S&P Global Ratings’ credit research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P Global Ratings also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.

About the Author


Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: Zelis Holdings L.P. Downgraded To 'B' On Dividend Recapitalization; Outlook Stable" Oct 21, 2024. Alacra Store. May 19, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Zelis-Holdings-L-P-Downgraded-To-B-On-Dividend-Recapitalization-Outlook-Stable-3271053>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: Zelis Holdings L.P. Downgraded To 'B' On Dividend Recapitalization; Outlook Stable Oct 21, 2024. New York, NY: Alacra Store. Retrieved May 19, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Zelis-Holdings-L-P-Downgraded-To-B-On-Dividend-Recapitalization-Outlook-Stable-3271053>
  
US$ 225.00
$  £  €
Have a Question?

Any questions about the report you're considering? Our Customer Service Team can help! Or visit our FAQs.

More Research

Search all our Credit Research from one place.