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Moody’s: Omnia unchanged by buyout
Moody's Investors Service said that Omnia Partners, Inc.'s wholly owned subsidiary National Intergovt Purchasing Alliance Co.'s (Omnia, B3) ratings and stable outlook are not impacted by its announcement that it has reached an agreement with all seven of the national sponsors of Communities Program Management, LLC to buy out the majority of their claim to future fee share payments for about $155.2 million.
The transaction is expected to be funded largely by incremental debt borrowings, including a $123.5 million senior secured first-lien term loan and a $26 million senior secured second-lien term loan, and will thereby increase the company's interest burden, the agency explained.
Additionally, as part of the transaction, over the next three years Omnia will make $25 million of additional payments of consulting and marketing services fees, Moody’s said.
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