S&P rates Ascend loans B, CCC+

Standard & Poor's said it assigned Ascend Learning LLC a preliminary B corporate credit rating and preliminary B ratings to its proposed $365 million senior secured credit facilities due 2016 with a recovery rating of 3, indicating expectation of 50% to 70% recovery.

S&P assigned the second-lien loan a rating of CCC+, with a recovery rating of 6, indicating 0% to 10% recovery for lenders.

The outlook is stable.

Proceeds will be used to refinance the company's unrated credit facilities and to pay a $108 million special dividend to its private-equity shareholders.

"The B rating on Ascend reflects our expectation of an 8% revenue and EBITDA increase in 2011 due to growing demand for the company's products and services as a result of increasing employment in health care and allied fields," S&P analyst Hal F. Diamond said in a statement.

The agency said it expects the company to perform in line with thresholds for the rating, including lease-adjusted debt leverage between 5.5x and 6.5x.

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