S&P affirms OMNIA after add-ons

S&P said it affirmed all the ratings on OMNIA Partners, Inc., including its B issuer credit rating, B rating and 3 recovery rating on its first-lien credit facilities and CCC+ rating and 6 recovery rating on its second-lien term loan.

OMNIA is issuing a $160 million add-on to its first-lien term loan and a $46 million add-on to its second-lien term loan to partially fund a $225 million dividend.

Pro forma leverage will jump to nearly 9x, but decline to the mid-7x range by Dec. 31, 2019, S&P said, and to less than 7x in 2020 based on expectations for strong revenue and earnings growth.

The stable outlook reflects an expectation that continued organic growth in the high-single digits, EBITDA margin expansion due to high operating leverage on its staff and overhead costs, as well as a lack of any further debt-funded distributions in the near term will support rapid de-leveraging, the agency said.

Despite the very high debt leverage following the dividend payment, the ratings were affirmed to reflect an expectation for rapid de-leveraging, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.