...- SolarWinds Holdings Inc. will pay down about $350 million in debt as part of an amend-and-extend transaction. In September 2022, the software provider had made a voluntary debt prepayment of $300 million, and this transaction will bring the total debt repayment in fiscal 2022 to about $665 million. Following deal close, we expect S&P adjusted leverage to be under 5x and free cash flow to debt to improve to about 9%. - We raised our issuer credit rating on SolarWinds to 'B+' from 'B'. We also raised our issue-level rating on the company's senior secured facilities to 'B+' from 'B', based on a recovery rating of '3'. - The stable outlook on SolarWinds reflects our view that the company has managed the fallout from the Sunburst breach well and its business performance has stabilized. Although growth and profitability are well below pre-breach levels, renewal rates are back to around low-90% area, subscription ARR growth remains strong, and the company has materially lowered leverage (by...
