Research Update: Kindred Healthcare Inc. Assigned Preliminary 'B+' Rating, Stable Outlook; Senior Secured Debt Rated 'B+(Prelim)' Mar 11

Standard & Poors, March 2011

Abstract
Louisville, Ky.-based post-acute care provider Kindred Healthcare Inc. plans to issue $600 million Asset-Backed revolving credit facility, and a $700 million secured term loan B. The company will use proceeds from the term loans as part of the financing necessary to fund its acquisition of RehabCare Group Inc. and pay transaction fees. We are assigning our preliminary 'B+' corporate credit rating, preliminary 'B+' issue-level rating, and preliminary recovery rating of '3' to the company's new senior secured term loan B. Our stable rating outlook reflects our view that the company will continue to benefit from low-single-digit organic growth and will reap synergies by eliminating most of RehabCare's corporate overhead, but will not meaningfully improve its financial risk profile within the...

Companies mentioned in this report are: Kindred Healthcare Inc.
Action: New Rating

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Product Type: Research Update
Research updates complement media releases. They offer more depth and detail than summary analyses by incorporating all information published in the media release. They are more up to date than summaries in that they are published simultaneously with media releases.

Kindred Healthcare Inc.

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