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. 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 76.5%, of the debt 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.
2.83x
Current Senior Secured
Net Debt Leverage Ratio
Debt Maturity Profile ¹.2
$9.8
2021
No Standing Financial
Covenants
$9.8
2022
4
$100.0*
$9.8*
2023
$868.7
$9.8
2024
Interest Rate
2025
76.5%
of the term
debt interest
rate is fixed
$0.0
$7.4
2019
Term Facility
2020
Revolving Facility
*All numbers in millions. ' As of February 13, 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%. *As of February 19, 2020, the Company has not drawn any amount 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 revolver, if drawn, must be repaid by 2023.5 As of December 31, 2019.
INOV Q4 & FY 2019 Earnings Supplement (2.19.20) v1.0.0
$915.3
$215.3
Floating
$700.0
5.55%
Weighted Average
Interest Rate
Term Facility
Net Debt'
$822.3
Current
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