S&P rates Research Now loans B, B-

Standard & Poor's said it affirmed its B corporate credit rating on Research Now Group Inc.

The outlook is stable.

At the same time, the agency assigned the company's senior secured first-lien term loan B and revolving credit facility its B issue-level rating. The recovery rating is 3, indicating an expectation for meaningful (50% to 70%; high end of the range) recovery for lenders in the event of a payment default.

Both the $35 million revolving credit facility and $255 million term loan B are due 2021.

S&P also assigned a B- issue rating to Research Now's proposed $135 million second-lien term loan due 2022 (one notch lower than the B corporate credit rating). The recovery rating is 5, indicating an expectation of minimal (10% to 30%; low end of the range) recovery for lenders in the event of a payment default.

Research Now plans to use the aggregate debt proceeds, along with equity contributed by Court Square Capital Partners, to finance the acquisition.

S&P will withdraw the issue-level ratings on Research Now's existing secured term loan due 2018 once the acquisition is completed, which it expects to occur in the first quarter of 2015.

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