S&P rates RedPrairie loans B+, CCC+

Standard & Poor's said it assigned a preliminary B corporate credit rating to RP Crown Parent LLC, along with a preliminary B+ rating to the company's proposed $1.45 billion senior secured first-lien term loan due 2018 and $100 million revolving credit facility due 2017.

The preliminary 2 recovery rating indicates 70% to 90% expected recovery in a default.

S&P also said it assigned a preliminary CCC+ rating to the company's senior secured second-lien term loan due 2019. The preliminary 6 recovery rating indicates 0% to 10% expected recovery in a default.

The outlook is stable.

RP Crown Parent will be the parent of RedPrairie Corp. and JDA Software Group Inc. as RedPrairie is proposing the issuances to acquire JDA. The proposed $100 million revolving credit facility will be undrawn.

The proceeds, along with cash and new equity, will be used to acquire all outstanding shares of JDA Software common stock, to repay existing debt at RedPrairie and JDA and to pay transaction costs, S&P said.

The ratings reflect the combined company's fair business risk profile, resulting from its narrow product focus, its competitive market segment and near-term integration risk, the agency said.

Partially offsetting these factors are meaningful recurring revenues and its diverse and entrenched customer base, which is expected to allow the company to deliver modest revenue growth, S&P said.

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