Moody's assigns N-able, loans B1

Moody's Investors Service said it assigned a B1 corporate family rating and B1-PD probability of default rating to N-able, LLC in connection with its planned spin-off from SolarWinds Holdings, Inc. Also, Moody's assigned a B1 rating to N-able's new senior secured bank credit facilities and an SGL-2 speculative grade liquidity rating. The outlook is stable.

The senior secured bank credit facilities will consist of a $350 million term loan B due April 2028 and a $60 million revolving credit facility due April 2026.

Proceeds from the term loan and a portion of N-able's cash will be used to distribute about $400 million to SolarWinds and pay transaction fees and expenses.

"N-able's B1 rating reflects its leading market position, strong revenue growth and moderate leverage, offset by modest scale, spin-off execution risks and the potential credit negative implications from reputational damage caused by SolarWinds' cyber incident," said Mariya Moore, a Moody's analyst, in a press release.

The outlook reflects Moody's forecast N-able will generate positive organic revenue growth in the next 12 months and maintain moderate leverage in the low-to-mid 4x range, the agency said.

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