Moody's: RedPrairie loans B2

Moody's Investors Service said it affirmed RedPrairie Corp.'s B2 corporate family rating and B3 probability of default rating, assigned a B2 rating to the company's proposed $380 million of senior secured credit facilities and changed the outlook to stable from positive.

The proposed secured credit facilities comprise a $40 million revolving credit facility and a $340 million term loan facility.

RedPrairie will use a portion of its cash on hand and net proceeds from the proposed term loans to refinance $225 million of existing debt and fund a one-time dividend of $136 million to shareholders.

Moody's said the change in ratings outlook reflects the increase in the company's financial leverage expected to result from the transaction and the likelihood that the company's financial policies will remain aggressive in the future.

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