Standard & Poor's, New York, has given a B rating to $600 million in new debt being raised by Capella Healthcare, Franklin, Tenn., a privately held hospital operator. The debt includes a $100 million asset-backed credit facility and $500 million in unsecured notes.
The rating is consistent with the company's corporate rating of B and reflects its high leverage and its plans to expand on its portfolio of 13 hospitals, according to S&P.
Capella will use the proceeds of the new debt to pay down its existing term loans, according to S&P. The company is taking advantage of favorable market rates to also provide financing for selective acquisitions and growth in existing markets, according to Capella CEO Dan Slipkovich.
