SolarWinds Sees Q2 Guidance Above Consensus, Cloud Subsidiary Prices Institutional Offering At $10.91/Share

SolarWinds Corp SWI subsidiary and cloud-based software solutions provider N-able, Inc proposed to sell 20.6 million shares at $10.91 per share from a private institutional placement.
The estimated offering proceeds are $216 million.
Canada Pension Plan Investment Board (CPP Investments) led the placement with other existing SolarWinds stockholders and multiple outside institutional investors.
SolarWinds will utilize the offering proceeds for stockholder distribution and repay third-party indebtedness. N-able will not retain any of the proceeds.
Additionally, SolarWinds expects to report second-quarter FY21 revenue growth of 6% year-on-year to the range of $260.8 million - $262 million, beating the analyst consensus of $256.44 million.
It estimates an adjusted EBITDA margin of 42%-43% and sees a net loss of $10.4 million- $11.3 million.
N-able sees revenue guidance of $84.8 million - $85 million, implying a 16% Y/Y growth.
Price action: SWI shares traded lower by 0.17% at $17.38 in the premarket session on the last check Monday.