Research Update: DTI Holdco Inc. (d/b/a Epiq) Outlook Revised To Positive From Negative On Improved Operating Momentum

For the second quarter ended June 30, 2021, U.S-based legal process outsourcing provider DTI Holdco Inc. (doing busines as Epiq,) reported sequential revenue and S&P Global Ratings adjusted EBITDA growth of 7% and nearly 22%, respectively, with legal service bookings up 28% sequentially. Additionally, the company obtained a nine-month maturity extension on the revolving credit facility now due June 2023, which alleviates near-term liquidity pressure. We revised the ratings outlook to positive from negative and our CCC+ issuer credit rating remains unchanged. The positive outlook reflects the likelihood that we could raise our ratings over the next 12 months if DTI mitigates its 2023 refinancing risk, continues to demonstrate solid operating performance, and improves its free operating cash flow (FOCF)

...- For the second quarter ended June 30, 2021, U.S-based legal process outsourcing provider DTI Holdco Inc. (doing busines as Epiq,) reported sequential revenue and S&P Global Ratings adjusted EBITDA growth of 7% and nearly 22%, respectively, with legal service bookings up 28% sequentially. - Additionally, the company obtained a nine-month maturity extension on the revolving credit facility now due June 2023, which alleviates near-term liquidity pressure. - We revised the ratings outlook to positive from negative and our ###+ issuer credit rating remains unchanged. - The positive outlook reflects the likelihood that we could raise our ratings over the next 12 months if DTI mitigates its 2023 refinancing risk, continues to demonstrate solid operating performance, and improves its free operating cash flow (FOCF) generation and liquidity position....

Research Update