Software Firm Magenta Buyer’s Junk Rating Affirmed by S&P

Magenta Buyer LLC’s CCC+ issuer credit rating was left intact at S&P Ratings as the security software company faces revenue declines and a free cash flow deficit this year.

• S&P affirmed the company’s issue-level rating of its super-priority term loan at B+, a B rating of its first-out term loan, a CCC rating to the second-out term loan, and CCC- rating on the third-out term loan
• The company’s negative outlook is due to its weak operating performance and an unsustainable long term capital structure, according to S&P
• Magenta Buyer went through a debt restructuring last year
  • The firm has ...