S&P rates RP Crown Parent notes CCC+

S&P said it assigned its CCC+ issue-level rating to RP Crown Parent LLC's proposed $400 million eight-year unsecured notes. S&P also assigned a 6 recovery rating to the notes, indicating an expectation for negligible recovery (0% to 10%) in the event of payment default.

RP Crown (which markets products under the JDA Software brand) will use the proceeds from the notes, a new $1.2 billion secured term loan and $580 million of new equity from new sponsor The Blackstone Group LP and existing sponsor New Mountain Capital LLC to repay existing debt and pay transaction fees.

S&P said it expects to raise the corporate credit rating to B from CCC+, remove it from CreditWatch where S&P placed it with positive implications on Aug. 22 and assign a stable outlook after the transaction closes.

The prospective upgrade reflects the improved cash flow that will result from the nearly $70 million in interest expense savings and the extension of the company's debt maturities, S&P said in a news release.

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