Fitch rates Constant Contact loan B+

Fitch said it assigned Constant Contact Inc.’s planned $300 million incremental first-lien term loan B+/RR3. The agency concurrently downgraded the first-lien revolving credit facility, the first-lien term loan and the first-lien delayed-draw term loan to B+/RR3 from BB-/RR2.

The new loan lowers the recovery rating to RR3 from RR2 and results in a one-notch downgrade, the agency said.

Fitch said it also affirmed the second-lien secured term loan at CCC+/RR6.

In November, Clearlake agreed to buy Siris' stake in Constant Contact for $580 million and, to partially fund the deal, Constant Contact will raise a $300 million incremental first-lien term loan. Clearlake plans to use $50 million of the loan to reduce the outstanding second-lien term loan. Additional funding for the purchase of Siris' stake will come from Clearlake and a small amount of cash from Constant Contact's balance sheet.

The outlook is stable.

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