Magenta Buyer LLC (dba Trellix and Skyhigh Security) recently completed a debt exchange transaction that S&P Global Ratings views as a distressed exchange. Without the exchange transaction, we project the company would have faced meaningful liquidity challenges throughout calendar year 2024. We lowered our issuer credit rating on the company to 'SD' (selective default) from 'CCC' and our issue-level rating on its original first-lien and second-lien term loans to 'D' from 'CCC+'. Over the coming days, we will reassess our issuer credit rating on Magenta Buyer LLC. Additionally, we will withdraw our ratings on the original revolving credit facility, first-lien debt, and second-lien debt. The downgrade follows the debt exchange Magenta Buyer LLC executed earlier in the current quarter. As
