Research Update: Magenta Buyer LLC 'B' Rating Affirmed On Proposed Acquisition Of FireEye Products Business; Outlook Negative

Symphony Technology Group (STG) has entered into a definitive agreement to acquire the FireEye Products business from FireEye Inc. for $1.2 billion. STG intends to combine the FireEye Products business with McAfee Enterprise. We affirmed our 'B' issuer credit rating on Magenta Buyer LLC (borrowing entity for McAfee Enterprise's organizational structure). We also affirmed our 'B' issue-level rating on Magenta Buyer's first-lien credit facility, with a '3' recovery rating, and our 'CCC+' issue-level rating on its second-lien term loan, with a '6' recovery rating. The negative outlook reflects Magenta Buyer's high S&P Global Ratings-adjusted leverage of about 9x at deal close. While the company has well-laid-out plans to lower costs and improve profitability, these plans could be disruptive over the

...- Symphony Technology Group (STG) has entered into a definitive agreement to acquire the FireEye Products business from FireEye Inc. for $1.2 billion. STG intends to combine the FireEye Products business with McAfee Enterprise. - We affirmed our 'B' issuer credit rating on Magenta Buyer LLC (borrowing entity for McAfee Enterprise's organizational structure). - We also affirmed our 'B' issue-level rating on Magenta Buyer's first-lien credit facility, with a '3' recovery rating, and our '###+' issue-level rating on its second-lien term loan, with a '6' recovery rating. - The negative outlook reflects Magenta Buyer's high S&P Global Ratings-adjusted leverage of about 9x at deal close. While the company has well-laid-out plans to lower costs and improve profitability, these plans could be disruptive over the near term and may keep leverage above mid-7x in the 12 months after the deal closes....

Research Update