Moody’s rates OneDigital loans B3

Moody's Investors Service said it assigned a B3 corporate family rating and B3-PD probability of default rating to Achilles Acquisition LLC (OneDigital).

The agency also assigned B3 ratings to the senior secured credit facilities being issued by OneDigital to refinance an existing credit facility, fund near-term acquisitions, fund a dividend to equity holders and pay related fees and expenses.

OneDigital's borrowing arrangement will include an $80 million five-year revolving credit facility and $510 million in seven-year term loans, including $460 million funded at closing, and $50 million available as a delayed draw.

The outlook is stable.

Moody's said that OneDigital's ratings reflect its expertise in employee benefits, healthy EBITDA margins, and solid organic growth.

OneDigital's strengths are offset by its modest size relative to other rated insurance brokers and service companies, high financial leverage and the large number of small agencies acquired since its inception in 2000, the agency noted.

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