Wednesday, May 17, 2023
Joe Gomes, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.
Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Refinancing. Yesterday, as widely expected, Orion closed on its debt refinancing. The new 3-year $103 million senior secured asset based credit facility with White Oak ABL, LLC and White Oak Commercial Finance, LLC consists of a $65 million asset based revolving credit facility and a $38 million fixed asset term loan. The new credit facility replaces the Company’s previous $42.5 million revolver.
Terms. The Revolver will initially bear interest at a rate of the 30-day SOFR plus 5.5% and the Term Loan at a rate of the 30-day SOFR plus 8.0%, subject to a SOFR floor of 4.0%. At a current 4.91% SOFR rate, this implies rates of approximately 10.4% and 12.9%. Orion was paying 10.2% on its previous credit line. At closing, the Company made an initial Revolver draw of $9.5 million.
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