S&P cuts Cambium first-lien loans

S&P said it downgraded Cambium Learning Group Inc.’s first-lien bank loans to B- from B and the recovery rate to 3 from 2. The 3 recovery rating indicates an expectation of meaningful (50%-70%; rounded estimate: 65%) recovery for lenders in the event of a default.

“The rating actions reflect our view of Cambium’s plan to increase the amount of its first-lien term loan issued in connection with the Rosetta Stone acquisition by $25 million to $450 million. Total debt issued in connection with this acquisition will remain the same, with the incremental second-lien term loan decreasing by $25 million to $125 million,” the agency said in a press release.

S&P affirmed its ratings on Cambium’s second-lien debt. Cambium’s other S&P ratings are unchanged, the agency said.

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