Synergy realization and stricter spending controls have strengthened Red IntermediateCo LLC's (dba Virgin Pulse) credit profile over the past 12 months, improved EBITDA margins, and led to positive free operating cash flow (FOCF). Stronger performance has also enhanced liquidity and prompted Virgin Pulse to repay outstanding revolver balances. As of the second quarter of 2023, the company had full availability under its $65 million revolving line of credit maturing in 2026. We revised our outlook to stable from negative and affirmed our 'B-' issuer credit rating. The stable outlook reflects Virgin Pulse's better recent performance and our expectations that it will continue to expand scale and EBITDA margins and generate positive FOCF. The stable outlook reflects Virgin Pulse's greatly improved
