S&P rates Rovi loans BB+

Standard & Poor's said it assigned BB+ ratings to the $600 million secured first-lien term loans of Rovi Corp. The term loans consist of a $300 million term loan A due 2016 and a $300 million term loan B due 2018.

The recovery rating is 1, indicating expectation of 90% to 100% recovery.

The corporate credit rating is BB-.

The outlook is stable.

Proceeds will be used to bolster Rovi's liquidity after its acquisition of Sonic Solutions Inc. for $764 million in a combination of stock and cash.

S&P said the rating reflects the company's significant financial risk, as well as its strong operating performance and its new product rollout, which will improve its competitive position.

The acquisition of Sonic has the potential to open up another significant revenue stream for the company, the agency added.

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