Team Health Debt Drops In Value: Multiple BDCs InvolvedPremium Free
We’re publishing here an article we just published in the BDC Credit Reporter about Team Health Inc. , “a provider of physician staffing and administrative services to hospitals and other healthcare providers in the U.S” [Moody’s]. The reasons why ? The company’s debt is held by 6 different BDCs, two of whom are public, and who will be affected by the performance of the company, both in terms of valuation and income. Also, we’ve been noticing for some time troubled credits in the health care sector. As readers know, health care – seen by lenders as stable and dependable – is one of the biggest industry components in BDC portfolios. Virtually every BDC we can think of has some health care exposure, and often a great deal. It’s too early to say there’s a clear negative trend like there undeniably is where retail or oil services or coal mining or trucking is concerned, but our self defined mandate is to provide readers with as much advance warning as possible that some kind of downward shift – greater than the usual diet of “idiosyncratic” trouble spots – might be underway. We expect we’ll be coming back to this subject repeatedly in the months ahead, as we dig deeper into healthcare sector credit performance. In the interim, just scanning down the posts we’ve written through 2019 on the BDC Credit Reporter will show how many health care related names are popping up. Not scientific but worth doing.
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