Moody’s rates OPE Inmar facilities B1, Caa1

Moody's Investors Service said it assigned a B2 corporate family rating and B2-PD probability of default rating to OPE Inmar Acquisition, Inc.

Concurrently, the agency assigned B1 ratings to the proposed $75 million senior secured first-lien revolver and $580 million senior secured first-lien term loan and a Caa1 rating to the proposed $175 million senior secured second-lien term loan.

The outlook is stable.

OPE Inmar Acquisition is a new legal entity that has been established as part of a transaction whereby an affiliate of Omers Private Equity is acquiring a controlling stake from ABRY Partners. OPE Inmar Acquisition, will be the initial borrower under the credit facilities.

Following the buyout, OPE Inmar Acquisition will ultimately merge with Inmar, Inc. and Inmar, Inc. will be the surviving entity.

Moody’s said the B2 corporate family rating reflects its expectation for high leverage, relatively small scale, the recurring nature of its contracted revenues, strong margins, and positive free cash flow. Following the transaction, the agency anticipates that pro forma debt/EBITDA will be about 6.5 times as of Dec. 31, 2016 and inclusive of acquisitions that closed during 2016.

The rating considers Moody's anticipation that Inmar will reduce leverage through earnings growth.

Inmar maintains a competitive market position in an industry with barriers to entry due to the embedded nature of it systems, the agency added.

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