S&P gives OneDigital, loans B

S&P said it assigned its B issuer credit rating to Achilles Holdco LLC, which will be changed to OneDigital Borrower LLC after Onex acquires a majority stake. The outlook is stable.

Concurrently S&P assigned B ratings to OneDigital's planned $150 million, five-year, first-lien revolver, $1.08 billion, seven-year, first-lien term loan and $200 million, seven-year, first-lien delayed-draw term loan (undrawn at closing). The recovery ratings on these issues are 3, reflecting meaningful recovery expectations (50%-70%, rounded estimate: 50%) in the event of a default.

“After the transaction closes, we will withdraw our ratings on OneDigital's downstream subsidiary Achilles Acquisition LLC and its debt ratings,” S&P said in a press release.

The stable outlook reflects the view OneDigital will reach pro forma adjusted leverage of 6.8x-7x in 2020-2021.

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