| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers R > Headlines for RP Crown Parent LLC > News item |
S&P keeps RP Crown on watch, rates facilities B
S&P said that its CCC+ corporate credit rating on RP Crown Parent LLC, which markets products under the JDA Software Group Inc. brand, remains on CreditWatch, where it was placed with positive implications on Aug. 22.
At the same time, the agency assigned its B issue-level rating and 3 recovery rating to the company's proposed $1.2 billion secured term loan due 2023 and $125 million secured revolving credit facility due 2021. The 3 recovery rating indicates am expectation for meaningful recovery (50%-70%; upper half of the range) of principal in the event of a payment default.
Additionally, S&P will withdraw its ratings on the company's existing bank debt after the transaction closes and the debt is repaid.
S&P said the CreditWatch action followed JDA's announcement that it will receive $570 million in new equity from Blackstone Group LP and New Mountain Capital LLC, which it will use to reduce debt.
"After the transaction closes, we expect to raise the corporate credit rating to B from CCC+, remove it from CreditWatch, and assign a stable rating outlook if the capital structure is implemented as proposed," S&P credit analyst Christian Frank said in a news release.
"The prospective upgrade also reflects the improved cash flow that will result from the expected $70 million in interest expense savings from the proposed transaction and the extension of the company's debt maturities."
The agency expects funds from operations (FFO) cash interest coverage to increase to the high-2 times area from 1.4 times currently, and annual unadjusted free operating cash flow (FOCF) to increase to the $100 million area or higher from last-12-months FOCF of negative $8 million.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.