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.
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