New York, May 26, 2016 -- Moody's Investors Service ("Moody's") downgrades Cengage Learning, Inc.'s proposed upsized $1,710 million Senior Secured Term Loan to B1 (LGD3) due to reduced structural subordination and support provided by lower amount of proposed Senior Unsecured Notes of $620 million. Moody's affirms Cengage Learning, Inc. B2 Corporate Family Rating (CFR) and Probability of Default Rating B2-PD after announcement in capital structure modification which is not expected to result in a change to total debt outstanding. The outlook remains stable. The issuer of the proposed debt (Cengage Learning, Inc.) was previously an operating subsidiary of Cengage Learning Acquisitions, Inc. (B2, Stable) holding the business assets, and is the surviving entity of the merger of Cengage Learning, Inc. and Cengage Learning Acquisitions, Inc. Moody's will withdraw all ratings for Cengage Learning Acquisitions, Inc. upon closing of the transaction.
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