Inovalon Results Presentation Deck
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 69.0%, 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.
3.79x
Current Senior Secured
Net Debt Leverage Ratio¹
$0.0
2019
Revolving Facility Financial Covenant
7-to-1 Senior Secured Net Debt Leverage Ratio or lower
Debt Maturity Profile ¹.²
$9.8
2021
$9.8
$100.0
2022
2023
$9.8
$868.7
2024
$7.4
2020
Revolving Facility
Term Facility
3
*All numbers in millions. As of March 31, 2020, ² Debt maturity includes all mandatory and fixed principal payments. 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%. * On March 14, 2020, the Company drew down its Revolving Facility. Since the Company's revolving facility is outstanding, 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 Q1 2020 Earnings Supplement (4.29.20) v1.0.1
Interest Rate ³
2025
69.0%
of the debt
Interest rate
is fixed ³
$1,014.3
$314.3
Floating
$700.0
5.26%
Weighted Average
Interest Rate
Credit Facility
Net Debt
$831.4
Current
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