Moody's rates Renaissance Learning loans B2

Moody's Investors Service said it affirmed Renaissance Learning, Inc.'s B2 corporate family rating and changed its probability of default rating to B3 from B2.

Moody's also assigned B2 ratings to Renaissance 's proposed amended/extended first-lien senior secured credit agreement, consisting of a $20 million revolving credit facility due 2017 and a $230 million term loan due 2018.

The outlook remains stable.

The company will use cash combined with proceeds from the amended term loan to refinance existing ebt, including the $75 million second-lien term loan.

Moody's said it views the transaction as credit positive as it materially reduces interest expense, extends debt maturities and reduces leverage.

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