S&P rates Orion B- facilities B

S&P said it assigned a B- issuer rating to GT Polaris Inc. (Orion), a company to be formed from the acquisition of Orion Advisor Solutions and Brinker Capital Inc.

The agency also assigned a B rating and 2 recovery rating to the first-lien senior secured credit facilities consisting of a new $700 million first-lien term loan and a new $80 million revolver. Orion will also obtain a new unrated $280 million second-lien term loan. It will use the proceeds to fund the purchase of Orion and Brinker and refinance debt.

“We expect adjusted leverage to remain high at more than 7x over the next two years, but good free operating cash (FOCF) generation in 2021 supports Orion’s liquidity and financial risk assessment. Under our base case, S&P Global Ratings-calculated adjusted leverage is forecasted to decline to the mid-7x area by the end of 2021, as the company realizes the benefits of improved scale and significant synergies over the next 12 months,” S&P said in a press release.

The outlook is stable.

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