S&P affirms Ascend Learning

Standard & Poor's said it affirmed its B corporate credit rating, along with all existing issue-level ratings, for Ascend Learning LLC, following the company's accessing of add-ons to its existing term loan B due 2016. The outlook is stable.

The agency said it also assigned the company's unfunded $20 million delayed-draw term loan due 2016 a B rating, with a recovery rating of 3, indicating an expectation of meaningful recovery for lenders in the event of a payment default.

According to S&P, the add-ons consist of a $40 million term loan due 2016 and $22 million term loan due 2016. Proceeds are expected to be used to finance acquisitions.

The rating on Ascend Learning reflects our expectation that EBITDA will grow at a moderate pace given solid end-market demand, notwithstanding high product development spending, but leverage will remain elevated reflecting the company's acquisition-driven growth and shareholder-return focused strategy.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.