Tear Sheet: DTI Holdco Inc. (Epiq)

DTI Holdco (d/b/a Epiq) reported a free operating cash flow (FOCF) deficit of about $23 million in 2023. Despite this, we continue to view the company?s total liquidity of about $107 million as of March 31, 2024, including its balance sheet cash and revolver availability, as adequate. Epiq improved its operating performance in the back half of 2023 and first quarter of 2024. Therefore, we now expect a strong performance for the rest of 2024 will improve the company's FOCF to debt to the low- to mid-single digit percent range. Epiq ended the year with a strong expansion in its revenue and solid bookings. Through the first quarter of 2024, the company has continued to demonstrate a solid operating performance,

...Foreign currency issuer credit rating B-/Stable/-- Local currency issuer credit rating B-/Stable/-- Business risk Weak Country risk Very Low Industry risk Intermediate Competitive position Weak Financial risk Highly Leveraged Cash flow/leverage Highly Leveraged Anchor b- Diversification/portfolio effect Neutral (no impact) Capital structure Neutral (no impact) Financial policy FS-6 (no impact) Liquidity Adequate (no impact) Management and governance Moderately Negative (no impact) Comparable rating analysis Neutral (no impact) Stand-alone credit profile b-...

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