Fitch assigns Orion B, first-lien BB-

Fitch Ratings said it assigned a first-time long-term issuer default rating to GT Polaris, Inc. (Orion Advisor Solutions) of B with a stable outlook.

Fitch also assigned a senior secured first-lien issue rating of BB-/RR2. Fitch’s actions affect about $780 million of committed and outstanding debt, pro forma for the transaction to be acquired and combined with Brinker Capital.

Genstar Capital and TA Associates will use the proceeds to combine GT Polaris and Brinker. Fitch said it sees fiscal year 2020 pro forma leverage of 8.6x, which is high for the technology sector in the B category.

“However, Fitch believes Orion’s favorable long-term growth prospects, strong market positioning relative to competitors and mid-teens FCF margins are supportive of the elevated leverage and indicative of a stronger credit profile than balance sheet metrics suggest,” Fitch said in a press release.

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