Moody's: RedPrairie outlook positive

Moody's Investors Service said it assigned RedPrairie Corp. B2 corporate family rating, B3 probability-of-default rating, and B2 ratings (LGD3, 34%) to the proposed $240 million first-lien senior secured term loan and the proposed $30 million revolving credit facility.

The outlook was revised to positive.

Proceeds from the new credit facilities will be used to repay obligations under its existing first and second lien facilities.

The outlook change follows the company's announcement that it has agreed to be acquired by a private-equity sponsor New Mountain Capital in a leveraged buyout for $526 million, according to the agency.

The affirmation of RedPrairie's B2 corporate family rating reflects its strong product offerings and domain expertise as well as its growing presence in the transportation management systems market, the agency said.

The corporate family rating is constrained by the company's high financial leverage, small scale relative to some larger and better capitalized competitors, product revenue concentration within warehouse management systems and large exposure to retail and consumer-goods end-markets, the Moody's said.

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