Magenta Buyer LLC (dba Trellix and Skyhigh Security) completed a distressed debt exchange and issued new super-priority debt, which enhances its short-term liquidity and cash interest expense requirements. We raised our issuer credit rating on Magenta to 'CCC+' from 'SD' (selective default). At the same time, we assigned our 'B+' issue-level rating to the company's new super-priority term loan, 'B' rating to the first-out term loan, 'CCC' rating to the second-out term loan, and 'CCC-' rating to the third-out term loan. The negative outlook reflects Magenta Buyer's weak operating performance with declining revenues and negative free cash flow over the past few years. It also reflects our view that the capital structure is unsustainable longer term without revenue stabilization and
