Moody's rates RP Crown loans B1, Caa1

Moody's Investors Service said it assigned B2 corporate family and probability of default ratings to RP Crown Parent, LLC, a holding company that was formed to complete the combination of RedPrairie Corp. and JDA Software Group, Inc.

Moody's also assigned B1 ratings to $1.55 billion of the proposed senior secured first-lien credit facilities comprised of a $100 million revolving loan and a $1.45 billion of term loan, and a Caa1 rating to the proposed $650 million of senior secured second-lien credit facilities.

The outlook is negative reflecting the execution risk of integrating the two companies combined with very high initial financial leverage.

RedPrairie's financial sponsors New Mountain Capital will use the net proceeds from the proposed credit facilities, about $367 million of new equity and $330 million of excess cash from JDA's balance sheet to refinance existing debt at RedPrairie and JDA and fund the purchase price of the JDA acquisition.

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