Moody’s lifts RP Crown, rates loans B1

Moody's Investors Service said it upgraded RP Crown Parent, LLC's corporate family rating to B2 from Caa1 and assigned a B1 rating to its $1.325 billion of first-lien credit facilities.

The outlook is stable.

Proceeds from the credit facilities and other debt offerings, along with $580 million of new equity from funds managed by the Blackstone Group and the existing financial sponsor New Mountain Capital, will be used to refinance existing debt and pay transaction fees and expenses.

Moody's will withdraw the ratings for RP Crown's existing credit facilities upon the repayment of the existing debt.

These actions conclude the review of RP Crown's ratings that was initiated on Aug. 25 upon the announcement of the plans to inject equity.

RP Crown is the parent company of JDA Software Group, Inc. and its products are offered under JDA's suite of Supply Chain Management software offerings.

"The infusion of equity will address the challenges of operating with unsustainable debt levels, approaching debt maturities and weak liquidity," Moody's analyst Raj Joshi said in a news release

The agency said it upgraded the corporate family rating to B2 to reflect the reduction in total debt to EBITDA (Moody's adjusted) by 2 times to 6.8 times, from about $500 million of debt reduction.

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