SolarWinds Holdings Inc. Debt Ratings Lowered On Term Loan Upsize To Partially Repay Notes; Recovery Ratings Revised

SAN FRANCISCO (S&P Global Ratings) Feb. 23, 2018--S&P Global Ratings today revised its recovery and issue-level ratings on Austin, Texas, information technology infrastructure management software provider SolarWinds Holdings Inc. 's first- and second-lien debt. We lowered our issue-level rating on the first-lien secured debt to 'B' from 'B+' after revising the recovery rating to '3' from '2'. The '3' recovery rating indicates our expectation for meaningful (50%-70%; rounded estimate: 65%) recovery in the event of payment default. We raised our issue-level rating on the second-lien secured notes to 'B-' from 'CCC+' after revising the recovery rating to '5' from '6'. The '5' recovery rating indicates our expectation for modest (10%-30%; rounded estimate: 10%) recovery in the event of payment default.

...SAN FRANCISCO (S&P Global Ratings) Feb. 23, 2018--S&P Global Ratings today revised its recovery and issue-level ratings on Austin, Texas, information technology infrastructure management software provider SolarWinds Holdings Inc. 's first- and second-lien debt. We lowered our issue-level rating on the first-lien secured debt to 'B' from 'B+' after revising the recovery rating to '3' from '2'. The '3' recovery rating indicates our expectation for meaningful (50%-70%; rounded estimate: 65%) recovery in the event of payment default. We raised our issue-level rating on the second-lien secured notes to 'B-' from '###+' after revising the recovery rating to '5' from '6'. The '5' recovery rating indicates our expectation for modest (10%-30%; rounded estimate: 10%) recovery in the event of payment default. The rating actions reflect our view of SolarWinds' plan to reprice first- and second-lien debt and increase its first-lien term loan by $250 million to $1.93 billion. The proceeds of the term...

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