Inovalon enters into credit agreement for Ocala buyout

Chicago, Nov. 24 – Inovalon Holdings Inc. has become a subsidiary of Ocala Bidco, Inc. on Wednesday, a transaction financed with a new credit facility, according to an 8-K filing with the Securities and Exchange Commission.

Ocala and Inovalon entered into a first-lien credit agreement with PNC, NA as administrative agent and collateral agent providing for a $2.34 billion first-lien term loan, a $250 million delayed-draw term loan and a super senior revolver for $250 million.

There is also a new second-lien credit agreement with Owl Rock Capital Corp. as administrative agent and collateral agent for $660 million.

With the closing of the merger, the company terminated all outstanding revolving credit commitments under its 2018 agreement with Morgan Stanley Senior Funding Inc. as administrative agent and all outstanding loans under the credit agreement were repaid in full.

Inovalon was purchased for $41.00 in cash for each share of class A common stock and class B common stock. The company is now a privately held company through the acquisition by an equity consortium led by Nordic Capital and joined by Insight Partners and 22C Capital.

The new subsidiary is a Bowie, Md.-based provider of cloud-based platforms empowering data-driven health care.

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