S&P rates Cambium loans B-, CCC

S&P said it assigned its B- issuer credit rating to Cambium Learning Group Inc. The outlook is stable.

The agency also assigned a B- issue-level and 3 recovery rating to the borrower's $370 million first-lien debt, consisting of a $50 million revolving credit facility due 2023 and a $320 million term loan due 2025. The 3 recovery rating indicates an expectation of meaningful (50%-70%; rounded estimate: 65%) recovery in the event of a payment default.

S&P also assigned a CCC issue-level and 6 recovery rating to the borrower's $130 million second-lien term loan due 2026. The 6 recovery rating indicates negligible (0%-10%; rounded estimate: 0%) recovery.

“The rating on Cambium reflects the company's small scale in the highly fragmented education technology (Ed Tech) industry composed of large content publishers (McGraw-Hill Education, Pearson, and Houghton Mifflin Harcourt), which have significantly greater resources, and niche providers, offset by Cambium's good penetration in U.S. preK-12 school districts and high net dollar retention rates,” the agency said in a news release.

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