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S&P gives La Petite Academy loans B, CCC
Standard & Poor's said it assigned its loan and recovery ratings to La Petite Academy Inc.'s proposed secured financing, consisting of a $110 million first-lien senior secured term loan due 2012, a $20 million first-lien revolving credit facility due 2011 and an $85 million second-lien term loan due 2013.
The agency said that the first-lien debt is rated B, one notch higher than the projected B- corporate credit rating on La Petite once the secured offering closes, with a recovery rating of 1 and the second-lien senior secured debt is rated CCC with a recovery rating of 4.
S&P added that the existing CCC corporate credit rating on La Petite remains on CreditWatch with positive implications, where it was placed on July 7, following the initial announcement that the company was exploring alternatives to refinancing its existing debt.
The refinancing will extend La Petite's debt maturities beyond five years, lessening financial pressure on the company, the agency said.
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