Research Update: Enova Outlook Revised To Negative On Expected Higher Leverage After Acquisition Of OnDeck; 'B' Rating Affirmed - S&P Global Ratings’ Credit Research

Research Update: Enova Outlook Revised To Negative On Expected Higher Leverage After Acquisition Of OnDeck; 'B' Rating Affirmed

Research Update: Enova Outlook Revised To Negative On Expected Higher Leverage After Acquisition Of OnDeck; 'B' Rating Affirmed - S&P Global Ratings’ Credit Research
Research Update: Enova Outlook Revised To Negative On Expected Higher Leverage After Acquisition Of OnDeck; 'B' Rating Affirmed
Published Jul 31, 2020
5 pages (1974 words) — Published Jul 31, 2020
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

Enova International is acquiring OnDeck Capital Inc., an online small business lender, for approximately $90 million funded by issuing $82 million in equity and $8 million in cash. As of June 30, 2020, OnDeck Capital has about $686 million in debt and generated $35.3 million of EBITDA for the 12 months ended June 2020. We are revising our outlook on Enova to negative from stable and affirming our 'B' issuer credit rating and 'B-' issue rating on the senior unsecured notes due 2024 and 2025. The negative outlook reflects our expectation that debt to EBITDA could approach 5.0x and that EBITDA coverage will remain below 4.0x. As with most acquisitions, there is also some operational risk to integration. On July

  
Brief Excerpt:

...- Enova International is acquiring OnDeck Capital Inc., an online small business lender, for approximately $90 million funded by issuing $82 million in equity and $8 million in cash. - As of June 30, 2020, OnDeck Capital has about $686 million in debt and generated $35.3 million of EBITDA for the 12 months ended June 2020. - We are revising our outlook on Enova to negative from stable and affirming our 'B' issuer credit rating and 'B-' issue rating on the senior unsecured notes due 2024 and 2025. - The negative outlook reflects our expectation that debt to EBITDA could approach 5.0x and that EBITDA coverage will remain below 4.0x. As with most acquisitions, there is also some operational risk to integration....

  
Report Type:

Research Update

Issuer
Enova International, Inc.
GICS
Consumer Finance (40202010)
Sector
Global Issuers
Country
United States
Region
United States
Format:
PDF Adobe Acrobat
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: Enova Outlook Revised To Negative On Expected Higher Leverage After Acquisition Of OnDeck; 'B' Rating Affirmed" Jul 31, 2020. Alacra Store. Nov 07, 2026. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Enova-Outlook-Revised-To-Negative-On-Expected-Higher-Leverage-After-Acquisition-Of-OnDeck-B-Rating-Affirmed-2488839>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: Enova Outlook Revised To Negative On Expected Higher Leverage After Acquisition Of OnDeck; 'B' Rating Affirmed Jul 31, 2020. New York, NY: Alacra Store. Retrieved Nov 07, 2026 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Enova-Outlook-Revised-To-Negative-On-Expected-Higher-Leverage-After-Acquisition-Of-OnDeck-B-Rating-Affirmed-2488839>
  
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