S&P rates RedPrairie loan B+

Standard & Poor's said it placed the B corporate credit rating on RedPrairie Holding Inc. on CreditWatch with developing implications.

The agency also assigned a B+ issue rating to the company's proposed $240 million term loan, maturing 2016 and its new $30 million revolver, maturing 2015 with 3 recovery ratings. The new ratings will not be placed on CreditWatch.

The actions reflect New Mountain Capital LLC's proposed acquisition of the company. If New Mountain completes its acquisition, the new credit agreement resets covenant step-downs, which are restrictive under the existing capital structure, according to the agency.

"Based on the resolution of these covenant concerns, as well as recent positive operating trends, we would raise RedPrairie's corporate credit rating to B+ upon completion of the acquisition," S&P analyst Jennifer Pepper said in a statement.

If the transaction is not completed, near-term covenant concerns would remain, and the agency said it could lower the rating.

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