S&P rates Omers Relief B-, loans B-, CCC

S&P said it assigned B- ratings to Omers Relief Acquisition LLC, its $300 million first-lien term loan and $100 million delayed-draw term loan. The recovery rating is 3. The agency also assigned a CCC rating to the $90 million second-lien term loan. The recovery rating is 6.

Omers, owned by Omers Private Equity, will be the borrower and use the proceeds to buy Gastro Health Group Holdings LLC through a combination of equity and debt financing.

“Given financial sponsor ownership, we expect leverage will remain elevated for at least the next two years as the company prioritizes growth and acquisitions over deleveraging. We expect Gastro Health's adjusted debt leverage will be about 10.5x-11.5x in 2021 and 9.5x-10.5x in 2022,” S&P said in a press release.

The outlook is stable, reflecting a forecast for revenue growth of about 50% in 2021 and about 20% in 2022, mainly driven by an aggressive acquisition strategy and low-to-mid-single-digit organic growth, the agency said.

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