...On March 8, 2021, a consortium led by Symphony Technology Group (STG) announced it entered into a definitive agreement to acquire McAfee Corp.'s enterprise security business in an all-cash carve-out transaction for approximately $4.0 billion. The rated entity will be Magenta Buyer LLC. - The transaction will be partially funded with a $2.3 billion first-lien senior secured credit facility, consisting of a $125 million undrawn revolver and a $2.175 billion term loan, and a $600 million second-lien senior secured term loan. - We assigned our 'B' issuer credit rating to Magenta Buyer LLC. We also assigned our 'B' issue-level and '3' recovery ratings to Magenta Buyer's proposed first-lien credit facility, and our '###+' issue-level and '6' recovery ratings to the second-lien term loan. - The negative outlook reflects Magenta Buyer's high S&P adjusted leverage of about 10x at deal close. While the company has well-laid-out plans to lower costs and improve profitability, these plans could be...
