Moody's rates Renaissance B2

Moody's Investors Service said it assigned a B2 corporate family rating and probability of default rating to Raphael Acquisition Corp., a new entity formed by funds advised by Permira Advisers LLC and its affiliates that will merge into Renaissance Learning, Inc. at transaction closing.

Moody's also assigned B1 ratings to Raphael Acquisition's proposed first-lien senior secured credit agreement, consisting of a $20 million revolving credit facility and $175 million term loan.

The outlook is stable.

Moody's said that proceeds from the proposed first-lien term loan combined with an unrated $75 million second-lien term loan and an approximately $197 million common equity contribution from the sponsor will fund the acquisition of Renaissance and repay existing debt for total consideration of about $479 million.

The transaction is expected to close in October, according to the agency.

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