Moody’s assigns B3 to Paradigm facility

Moody’s Ratings said it assigned B3ratings to Outcomes Group Holdings, Inc.’s (Paradigm Corp.) planned first-lien term loan and first-lien senior secured revolver. The agency also revised the outlook to positive from stable and affirmed its B3 corporate family and B3-PD probability of default ratings.

The agency said it will withdraw the ratings on the outstanding term loans and revolver when the refinancing closes.

The positive outlook follows Paradigm's planned refinancing that will extend all significant debt maturities from 2025 to 2029-2031 and double the revolver capacity to $100 million.

“The revision of the outlook to positive also reflects Paradigm's recent deleveraging and Moody's expectation that this trend will continue. Debt/EBITDA has improved from approximately 7.5x at the time of the 2018 LBO and 6.5x following the April 2022 dividend recapitalization, to 5.9x at Dec.31, 2023. Moody's expects continued deleveraging with debt/EBITDA approaching 5x over the next 12-18 months barring additional debt-funded distributions and acquisitions,” the agency said in a press release.

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