Research Update: Inmar Inc. Outlook Revised To Stable From Negative On Maturity Wall Extension; 'B-' Rating Affirmed

Inmar Inc. plans to refinance its capital structure with new $1.05 billion senior secured first-lien credit facilities and $485 million of preferred equity. This will extend the company's large 2024 maturities to 2026, reduce first-lien debt, and repay its $175 million second-lien term loan. The proposed transaction eliminates near-term refinancing risk. We forecast Inmar will generate positive free operating cash flow (FOCF) in 2023 on organic growth and a reduced cash interest burden. We revised our outlook to stable from negative and affirmed our 'B-' issuer credit rating on Inmar. At the same time, we assigned our 'B-' issue-level rating and '3' recovery rating to the proposed senior secured credit facility, including a $100 million revolving credit facility and $950

...- Inmar Inc. plans to refinance its capital structure with new $1.05 billion senior secured first-lien credit facilities and $485 million of preferred equity. This will extend the company's large 2024 maturities to 2026, reduce first-lien debt, and repay its $175 million second-lien term loan. - The proposed transaction eliminates near-term refinancing risk. We forecast Inmar will generate positive free operating cash flow (FOCF) in 2023 on organic growth and a reduced cash interest burden. - We revised our outlook to stable from negative and affirmed our 'B-' issuer credit rating on Inmar. - At the same time, we assigned our 'B-' issue-level rating and '3' recovery rating to the proposed senior secured credit facility, including a $100 million revolving credit facility and $950 million first-lien term loan. - The stable outlook reflects our expectation that Inmar will increase revenue and EBITDA in 2023 and sustain (FOCF) to debt in the 2%-5% area....

Research Update