Research Update: SolarWinds Holding Inc. 'B+' Issuer Credit Rating Placed On CreditWatch Negative On Announced Take-Private Transaction

IT management solutions provider SolarWinds Holdings Inc. announced it has entered into a definitive agreement to be acquired by financial sponsor Turn/River Capital for approximately $4.4 billion. The transaction is expected to close in second quarter of 2025. We assigned Starlight Parent (dba SolarWinds) a ?B? issuer credit rating. We placed our ?B+? issuer credit rating on SolarWinds on CreditWatch with negative implications. We will resolve the CreditWatch placement once the acquisition closes. The CreditWatch placement follows SolarWinds? announcement that it is being taken private by financial-sponsor Turn/River Capital for $4.4 billion. We expect the transaction, which remains subject to regulatory approvals, to close in the second quarter of 2025. We assigned new entity Starlight Parent?s (dba SolarWinds) a ?B?

...Rating Component Scores Component Foreign currency issuer credit rating B+/Watch Neg/-- Local currency issuer credit rating B+/Watch Neg/-- Business risk 4 - Fair Country risk 1 - Very Low Risk Industry risk 3 - Intermediate Risk Competitive position 4 - Fair Financial risk 5 - Aggressive Cash flow/leverage 5 - Aggressive Anchor ##- Diversification/portfolio effect 3 - Neutral/Undiversified Capital structure Neutral Financial policy FS-5 Liquidity Adequate Management and governance Moderately Negative Comparable rating analysis Negative Stand-alone credit profile b+...

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