Orion Advisor Solutions Inc.

The stable outlook reflects our forecast of positive free operating cash flow (FOCF) and adjusted leverage in the 6.5x – 7.5x range over the next year. This is supported by our anticipation for the successful integration and realization of synergies from recent acquisitions, and double-digit-percent organic revenue growth, driven by continued strong performance from the Orion Advisor Technology segment. We could raise the rating in the next 12 months if the realization of synergies from recent acquisitions, growth in assets under administration (AUA) and AUM, and increased revenue per account translates into consistent EBITDA growth, particularly if it is accompanied with debt prepayments. Specifically, an upgrade would be consistent with the following: Adjusted leverage sustained below 7x; and FOCF to

...We expect Orion's adjusted leverage to remain in the 6.5x-7.5x range over the next year. We forecast Orion Advisor Solutions Inc.'s S&P Global Ratings-adjusted leverage to be in the mid-7x area for 2021 in part due to the combination with Brinker last year, and we project the company will deleverage to the high-6x area by the end of 2022, as it integrates recent acquisitions. The company recently announced the acquisition of BasisCode Compliance LLC, a leading provider of regulatory compliance and risk management technology for an undisclosed amount. In March 2021, Orion used proceeds from a $100 million incremental add-on to its term loan B to acquire Atlanta-based HiddenLevers, a scenario-based risk modeling technology provider serving the wealth management industry. We expect the company will continue pursuing a debt-funded acquisitive growth strategy, precluding sustained deleveraging. The company has benefited from tailwinds in both its technology and TAMP segments, leading to our...

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