DBRS Finalizes Provisional Rating on Centric Health Corporation’s Senior Secured 2nd Lien Notes

DBRS has today finalized the provisional rating of B (high), with a Stable trend, on Centric Health Corporation’s (Centric or the Company) Senior Secured 2nd Lien Notes (the Notes). After its review of all documentation associated with the recent offering, DBRS has confirmed that all terms of the issuance of the Notes were consistent with those contemplated at the time the provisional rating was assigned on April 9, 2013.

The Notes issued totalled $200 million, maturing April 18, 2018. Proceeds from the Notes were used primarily to repay certain existing indebtedness and to redeem for cancellation preferred units of LifeMark Health Limited Partnership held by Alaris Income Growth Fund Partnership. The Notes are senior secured indebtedness of Centric, secured by second-priority liens (junior to the first-priority liens securing the credit facilities of Centric) on substantially all of the assets of Centric and the Secured Guarantors. Terms of the Notes include Optional Redemption, Equity Claw-Back and Change of Control Provisions, as well as other negative covenants limiting the Company’s ability to:

-- Make restricted payments;
-- Incur additional indebtedness;
-- Permit contractual restrictions;
-- Create, or permit to exist, liens;
-- Engage in transactions with affiliates;
-- Transfer and sell assets;
-- Alter the business activities conducted;
-- Enter into sale and leaseback transactions,
-- Consolidate, amalgamate and merge with another company; and
-- Designate restricted and unrestricted subsidiaries.

For additional information on DBRS’s view of the credit quality of Centric, or its recent debt issuance, please refer to the DBRS report dated April 9, 2013.

Notes:
All figures are in Canadian dollars unless otherwise noted.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link to the right under Related Research or by contacting us at info@dbrs.com.

The applicable methodologies are Rating Companies in the Merchandising Industry, Rating Companies in the Services Industry and DBRS Recovery Ratings for Non-Investment Grade Corporate Issuers, which can be found on our website under Methodologies.