Moody's rates Quasar loans B2, Caa2

Moody's Investors Service said it assigned B2 ratings to the planned $2.71 billion first-lien term loan due 2029 and $400 million revolver due 2027 to be issued by Quasar PM/ISM Borrower LLC, a debt issuing subsidiary of Quasar Intermediate Holdings Ltd. The agency also gave a Caa2 debt instrument rating to the proposed $865 million second-lien term loan due 2030.

Concurrently, Moody’s assigned Quasar Intermediate a B3 corporate family rating and a B3-PD probability of default rating, which is the holding company for Quest Software and One Identity.

The capital raised will be used with about $2 billion of new cash equity to support Clearlake Capital Group, LP's $5.4 billion buyout of Quasar from Francisco Partners. The $400 million revolving credit facility is expected to remain undrawn at close and about $50 million of cash will be added to the balance sheet for general corporate purposes.

Moody's said it will pull all ratings and its stable outlook on Seahawk Holding Ltd., including the B3 CFR, B3-PD and Quest Software US Holdings Inc., including the B2 first-lien debt instrument ratings, Caa2 debt instrument rating and stable outlook once the deal is consummated.

The outlook for both Quasar and Quasar PM/ISM is stable.

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