Moody's: Surgery Center Holding's Debt-to-EBITDA Ratio to Rise 8-Fold Following Symbion Deal
Wall Street Journal.
Moody's also reports the company has no capital left from H.I.G.'s initial investment, following Symbion's acquisition and two dividend recaps, according to the report. As a result, Moody's says the combined company's financial performance will likely suffer if CMS reduces reimbursement rates for ambulatory procedures.
The buyout, funded by Jefferies Group, is one of several from the company, according to the report. Because of pressure from regulators to avoid financing buyouts that put more than six times a company's EBITDA, J.P. Morgan and Morgan Stanley passed on financing the deal, despite having previously financed Surgery Center Holding's dividend recaps. Jefferies is not a bank and did not face similar regulatory pressures, according to the report.
More Articles on Turnarounds:
7 Things for ASC Leaders to Know for Thursday
SCA, Medline Sign $175M Deal for 5-Year Cost Savings
8 Ways to Send a Collaborative Message
© Copyright ASC COMMUNICATIONS 2014. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.
To receive the latest hospital and health system business and legal news and analysis from Becker's Hospital Review, sign-up for the free Becker's Hospital Review E-weekly by clicking here.
New From Becker's ASC Review