Inovalon Mergers and Acquisitions Presentation Deck
Debt, Cash
Flow &
Leverage
Pay-Down
INOV & ABILITY Presentation (3.7.18) v1.0.0
• Post transaction, the Company is expecting to have strong
liquidity with approximately $75M+ in cash and $100M in
an untapped revolver.
●
Inovalon will finance the transaction through $100M of
restricted equity¹, cash on hand, and borrowings from a
new $980M term loan, which will also be used to pay off
and replace the Company's existing credit facility
indebtedness.
●
The Pro-Forma Net Debt / Adjusted EBITDA ratio is
estimated to be approximately 4.6x at closing, and
targeting less than 3.0x in 2020.
The Company is committed to paying down its debt
leverage as the primary application of its free cash flow for
the foreseeable future.
The Company expects to secure protections from interest
rate risk on some or most of its indebtedness.
Referenced $100M in equity translates into 7.6 million shares, based on the 45-day trailing average closing stock price for INOV as of March
5, 2018 of $13.16.
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