DISTRESSED DAILY: Failed Acquisition Puts Aveanna Debt at Risk

A failed acquisition and allegations of safety violations may mean Aveanna Healthcare LLC, a provider of at-home nursing for the sick and disabled, will have trouble taking care of its debt.

• S&P Global Ratings cut Aveanna to CCC+ from B- last week after the company scrapped a plan to acquire Maxim Health Services Inc.’s home care services division. The acquisition was expected to offset weakness by providing new equity, more liquidity and better cash flow.
  • “Absent these benefits, with the burden of significant acquisition-related expenses, and with prospects for ongoing cash flow deficits, we believe Aveanna’s liquidity will ...