Moody's rates Outcomes loans B2, Caa2

Moody's Investors Service said it assigned a B3 corporate family rating and B3-PD probability of default rating to Outcomes Group Holdings, Inc., parent company of Paradigm Acquisition Corp.

Moody's also said it assigned a B2 (LGD 3) rating to the company's proposed $450 million first-lien senior secured credit facilities and a Caa2 (LGD 5) rating to the company's $155 million second-lien senior secured term loan.

The proceeds from the credit facilities, along with an equity contribution from Ontario Municipal Employees Retirement System, will fund the buyout of the company from the current owner, Summit Partner, LP and pay transaction fees and expenses, the agency said.

The outlook is stable.

The ratings reflect Paradigm's high financial leverage following the leveraged buyout, Moody's said.

The agency said it anticipates a pro forma debt-to-EBITDA ratio of about 7.5x.

The ratings also consider the company's modest absolute size based on revenues, Moody's said, and relatively high customer concentration within the niche sub-segment of the worker's compensation case management industry. The ratings are supported by the company's leading market position, high barriers to entry and solid earnings growth prospects as it expands its service offerings, the agency 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.