...- Orion Advisor Solutions Inc.'s cash flow generation was lower than we expected in 2023, driven by higher interest expense, lower working capital benefits, and modestly lower EBITDA. - The company's opportunistic repricing of its second-lien term loan, including a new payment-in-kind (PIK) option for the next six quarters, will significantly increase Orion's cash flow generation and enable it to repay its revolver balances quicker. - Under our revised base case for 2024, we anticipate free operating cash flow (FOCF) of $20 million to $30 million per year in 2024 and 2025. Nevertheless, leverage will remain high at around 10x and EBITDA coverage of total interest at about 1.1x. - We affirmed our ratings on Orion, including our 'B-' issuer credit rating and 'B' issue-level ratings. - The stable outlook reflects our expectation of EBITDA expansion and FOCF generation from price increases, cost cuts, continued robust technology revenue and account growth, better retention in the wealth management...
