S&P puts RP Crown on positive watch

S&P said it placed its CCC+ corporate credit rating on RP Crown Parent LLC (doing business as JDA Software Group Inc.) on CreditWatch with positive implications.

The CreditWatch action follows JDA's announcement that it will receive $570 million in new equity from the Blackstone Group LP and New Mountain Capital LLC, which it will use to reduce debt.

“We understand that JDA will refinance its existing debt, with the first maturity coming in 2023. The company expects these actions to result in approximately $70 million of interest expense savings, which we believe would allow it to generate positive cash flow after debt service compared to negative free cash flow during the last 12 months,” S&P said in a news release.

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