S&P rates Outcomes loans B, CCC+

S&P said it assigned its B issue-level rating and 3 recovery rating to Outcomes Group Holdings' (doing business as Paradigm Corp.) proposed $110 million non-fungible senior secured first-lien term loan due October 2025. The 3 recovery rating indicates an expectation for meaningful (50%-70%; rounded estimate: 55%) recovery in the event of a default.

S&P also assigned a CCC+ issue-level rating and 6 recovery rating to its proposed $60 million non-fungible senior secured second-lien term loan due October 2026. The 6 recovery rating indicates an expectation for negligible (0%-10%; rounded estimate: 0%) recovery in the event of a default.

The B issuer credit rating and stable outlook on the company are unchanged.

Paradigm intends to use the proceeds from the incremental debt to fund a shareholder distribution and pay down its revolver balance. The company also intends to extend the maturity of its $50 million revolving credit facility by 18 months, to April 2025, S&P said in a news release.

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