Moody’s rates DTI CFR, facility B2

Moody's Investors Service said it assigned DTI Holdco, Inc. a B2 corporate family rating and B2-PD probability of default rating.

Concurrently, the agency assigned a B2 rating to the company's proposed $1,295,000,000 billion first-lien credit facility (including a $100 million revolver).

The outlook is stable.

DTI entered into a definitive agreement to acquire Epiq Systems, Inc. The transaction is subject to shareholder approval and is expected to close in the fourth quarter of 2016. Moody's currently rates Epiq B1 (under review), but will withdraw all of its ratings upon closing of the transaction.

The merger of DTI and Epiq, two similarly sized companies with complementary businesses, creates a credible competitor in highly fragmented and competitive LPO space, the agency explained.

Moody's said it believes that with greater scale, increased breadth of services and geographic footprint, the combined entity will be able to serve and attract a larger customer base and realize cost advantages and efficiencies while creating value for its clients.

The proceeds from the proposed $1,195,000,000 first-lien term loan, along with new and rollover equity from Omers Private Equity and Harvest Partners, will be used to refinance all of DTI's existing debt (excluding capital leases), fund Epiq's go-private transaction and pay related fees and expenses.

At closing, Omers will own about 65% of the pro forma equity, while Harvest Partners and management will own the remaining 35%.

© 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.