INOV Investor Presentation
Covenant-Lite Debt Leverage
On April 2, 2018, the Company put in place a $980M seven-year term debt facility and $100M five-year revolving debt facility, collectively the credit facility. Proceeds
were used, among other things, to pay off all of the Company's existing debt obligations of $225M as well as to provide the financing necessary to fund a portion of the
consideration paid for the ABILITY Network acquisition. Following the ABILITY acquisition, the Company's financial position remains strong, with significant liquidity,
strong cash flow, and balance sheet flexibility. The term debt facility's maturity schedule provides financial flexibility with 93.7% of principal due in 2025, and the Term
Loan does not contain any standing financial covenants. Additionally, the Company's interest rate swaps fix $700M, or 77%, of the credit facility's principal amount.
The Company expects to apply its strong cash flow to pay down its debt to achieve a Net Debt Leverage Ratio of less than 3.00x.
3.69x
Current Senior Secured
Net Debt Leverage Ratio¹
Debt Maturity Profile 1,2
No Standing Financial
Covenants
Interest Rate 3
5.21%
Weighted Average
Interest Rate
Net Debt 1
1
$868.7
$0.0
$4.9
$9.8
$9.8
$100.04
$9.8
$9.8
2019
2020
2021
2022
2023
2024
2025
77%
of the debt
interest rate
is fixed 3
$912.9
I $212.9
I Floating
$700.0
Credit Facility
$817.3
Current
■Term Facility Revolving Facility
All numbers in millions. 1 As of June 30, 2020. 2 Debt maturity includes all mandatory and fixed principal payments. 3 In 2018, the Company entered into four interest rate swaps, each of which mature in March 2025. The interest rate swaps fix the LIBOR rate component of interest
on $700.0 million of the 2018 debt facility at a weighted average rate of approximately 2.8%. 4 As of July 29, 2020, the Company did not have any amount drawn under its available $100 million revolver. If the Company draws on the revolver, a maximum senior secured net leverage
ratio of 7-to-1 (or better) is required to be maintained across the senior secured debt and revolver. The Revolving Facility must be repaid by 2023.
INOV Investor Presentation (8.20) v 1.0.3
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