New York-based provider of alternative legal services DTI Holdco Inc. (doing business as Epiq) intends to refinance its existing second-lien term loan with proceeds from a fungible first-lien term loan add-on. Therefore, we affirmed our issuer credit rating of 'B-' because we view the transaction as roughly leverage neutral. At the same time, we affirmed our 'B-' issue-level rating and '3' recovery rating on the proposed first-lien term loan. The stable outlook on Epiq reflects our expectation it will increase its S&P Global Ratings-adjusted EBITDA such that its leverage declines to the low- to mid-6x range and its free operating cash flow (FOCF) to debt improves to the 3%-5% range in 2024. For the complete credit rationale, please see our
