S&P assigns B to NMN loans

S&P said it assigned its B issuer credit rating to CRT mobility solutions provider NMN Holdings III Corp. (Numotion). The outlook is stable.

At the same time, S&P assigned a B issue-level rating to the company’s proposed first-lien senior secured debt, which comprises a $50 million revolver, $330 million first-lien term loan and $70 million delayed-draw first-lien term loan. The recovery rating is 3, indicating expectations of meaningful recovery (50%-70%; rounded estimate: 65%) in a payment default. The second-lien debt will not be rated.

“The ratings on Numotion reflect its limited size and narrow business focus in the relatively small and highly fragmented CRT market, meaningful revenue concentration with a single supplier, high leverage, thin free cash flow, and third-party reimbursement exposure,” S&P said in a news release.

“These risks are partially mitigated by the company's leading market position, meaningful competitive advantage provided by its large team of skilled assistive technology professionals (ATPs), and relatively predictable stream of recurring revenues coming from chair replacements and repairs.”

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