Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers O > Headlines for Outcomes Group Holdings, Inc. > News item |
S&P rates Paradigm loans B, CCC+
S&P said it assigned its B corporate credit rating to Outcomes Group Holdings Inc. (Paradigm). The outlook is stable.
At the same time, S&P assigned a B debt rating to Paradigm's planned $50 million five-year first-lien revolver and $450 million seven-year first-lien term loan. The recovery ratings on the first-lien credit facilities are 3, reflecting an expectation for meaningful recovery (50%-70%, rounded estimate: 60%) in the event of a payment default.
S&P also assigned a CCC+ debt rating to the planned $155 million eight-year second-lien term loan. The recovery rating on the second-lien term loan is 6, reflecting an expectation of negligible (0%) recovery in the event of payment default.
The rating action follows OMER Private Equity's announced acquisition of a majority stake in Paradigm Outcomes (joining existing owners Summit Partners and management – which will retain minority stakes). The new holding company Outcomes Group Holdings Inc. (Paradigm) will issue $605 million in funded debt to effectuate the transaction.
“This will result in adjusted leverage of 7.1x (pro forma as of June 30, 2018, including our adjustments), which we expect Paradigm to lower to 6.25x-6.75x in 2019 based on reported EBITDA growth of at least 10% and required first-lien debt amortization. We expect EBITDA interest coverage of 2x in 2019,” S&P said in a news release.
© 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.