Filing Details

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Schedule 13D

Under the Securities Exchange Act of 1934

(Amendment No. __)*

 

 

N-able, Inc.

(Name of Issuer)

Common stock, par value $0.001

(Title of Class of Securities)

62878D100

(CUSIP Number)

Ariele Cohen

c/o The Prudential Insurance Company of America

751 Broad Street

Newark, New Jersey 07102

(973) 367-5329

(Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications)

July 19, 2021

(Date of Event which Requires Filing of this Statement)

 

 

If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of §§ 240.13d1(e), 240.13d1(f) or 240.13d1(g), check the following box.  ☐

 

 

NOTE: Schedules filed in paper format shall include a signed original and five copies of the schedule, including all exhibits. See Rule 13d7 for other parties to whom copies are to be sent.

 

 

 

*	The remainder of this cover page shall be filled out for a reporting persons initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed to be filed for the purpose of section 18 of the Securities Exchange Act of 1934 (Act) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

 

 

 

1		NAMES OF REPORTING PERSON   The Prudential Insurance Company of America
2		CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)   (a) ☒ (b) ☐
3		SEC USE ONLY
4		SOURCE OF FUNDS (See Instructions)   OO
5		CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(D) OR 2(E)   ☐
6		CITIZENSHIP OR PLACE OF ORGANIZATION   New Jersey

NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH		7		SOLE VOTING POWER   0
		8		SHARED VOTING POWER   16,333,202 (See Item 4)
		9		SOLE DISPOSITIVE POWER   0
		10		SHARED DISPOSITIVE POWER   371,960 (See Item 4)

11		AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON   371,960 (See Item 4)
12		CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (See Instructions)   ☐
13		PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)   0.2% (See Item 4)
14		TYPE OF REPORTING PERSON (See Instructions)   CO

1		NAMES OF REPORTING PERSON   Prudential Legacy Insurance Company of New Jersey
2		CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (See Instructions)   (a) ☒ (b) ☐
3		SEC USE ONLY
4		SOURCE OF FUNDS (See Instructions)   OO
5		CHECK IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEMS 2(D) OR 2(E)   ☐
6		CITIZENSHIP OR PLACE OF ORGANIZATION   New Jersey

NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH		7		SOLE VOTING POWER   0
		8		SHARED VOTING POWER   371,960 (See Item 4)
		9		SOLE DISPOSITIVE POWER   0
		10		SHARED DISPOSITIVE POWER   371,960 (See Item 4)

11		AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON   371,960 (See Item 4)
12		CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES (See Instructions)   ☐
13		PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)   0.2% (See Item 4)
14		TYPE OF REPORTING PERSON (See Instructions)   CO

Item 1.

Security and Issuer.

This statement on Schedule 13D (the Schedule 13D) relates to the common stock, par value $0.001 per share (the Common Stock) of N-able, Inc., a Delaware corporation (the Issuer). The Issuers principal executive offices are at 301 Edgewater Dr., Suite 306, Wakefield, Massachusetts 01880.

 

Item 2.

Identify and Background.

This Schedule 13D is being filed jointly on behalf of the following persons: The Prudential Insurance Company of America and Prudential Legacy Insurance Company of New Jersey (collectively, the Reporting Persons).

The Reporting Persons have entered into a Joint Filing Agreement, a copy of which is attached hereto as Exhibit 1.

The address of the principal business office of each of the Reporting Persons is 751 Broad Street, Newark, New Jersey 07102.

Each of the Reporting Persons is organized under the laws of the State of New Jersey. Ultimate voting and dispositive power with respect to the shares held by the Reporting Persons is exercised by Prudential Financial, Inc. The name, business address, present principal occupation or employment and citizenship of each director and executive officer of the Reporting Persons is set forth on Annex A hereto. During the last five years, none of the Reporting Persons or, to the knowledge of the Reporting Persons, any person identified in Annex A: (i) has been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors); or (ii) was a party to a civil proceeding of a judicial or administrative body of competent jurisdiction and as a result of such proceeding was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, federal or state securities laws or finding any violation with respect to such laws.

 

Item 3.

Source and Amount of Funds or Other Consideration

The Common Stock beneficially owned by the Reporting Persons was acquired on July 19, 2021 in connection with the distribution of shares of Common Stock by SolarWinds Corporation (SolarWinds) to holders of SolarWinds common stock as of July 12, 2021 (the Distribution). The Reporting Persons did not pay any consideration for the shares received in the Distribution.

 

Item 4

Purpose of Transaction

The information set forth or incorporated by reference in Item 6 of this Schedule 13D is incorporated by reference in its entirety into this Item 4.

The Reporting Persons hold the Common Stock for investment purposes. Depending on market conditions and other factors (including evaluation of the Issuers businesses and prospects, availability of funds, alternative uses of funds and general economic conditions), the Reporting Persons may from time to time acquire additional securities of the Issuer or dispose of all or a portion of their investment in the Issuer.

Except as set forth in the preceding paragraph and in Item 6 of this Schedule 13D, as of the date hereof, the Reporting Persons do not have any plan or proposal that relates to or would result in any of the transactions enumerated in sub items (a) through (j) of the instructions to Item 4 of this Schedule 13D.

 

Item 5

Interest in Securities of the Issuer

The information contained in rows 7, 8, 9, 10, 11 and 13 on each of the cover pages of this Schedule 13D and the information set forth or incorporated in Items 2, 3 and 6 is incorporated by reference in its entirety into this Item 5.

 

(a)

(b) In the aggregate, the Reporting Persons beneficially own 743,920 shares of Common Stock, or 0.4% of the Common Stock outstanding.

Certain of the Reporting Persons, certain affiliates of Silver Lake Group, L.L.C. (Silver Lake), certain affiliates of Thoma Bravo, L.P. (Thoma Bravo) and certain co-investors of Thoma Bravo, in each case, listed on Annex B attached hereto (collectively, the Stockholders) are parties to a Stockholder Agreement (the Stockholder Agreement), which contains, among other things, certain provisions relating to transfer of, and coordination of the voting of, securities of the Issuer by the parties thereto.

 

By virtue of the Stockholders Agreement described in Item 6 of this Schedule 13D and the obligations and rights thereunder, the Reporting Persons acknowledge and agree that they are acting as a group with the other Stockholders within the meaning of Section 13(d) of the Securities Exchange Act of 1934, as amended (the Exchange Act). Based in part on information provided by or on behalf of the other Stockholders, as of July 19, 2021, such a group would be deemed to beneficially own an aggregate of 122,971,296 shares of Common Stock, or 68.8% of the total number of shares outstanding. The Reporting Persons expressly disclaim beneficial ownership over any shares of Common Stock that they may be deemed to beneficially own solely by reason of the Stockholder Agreement. Certain entities affiliated with Silver Lake Group, L.L.C. (Silver Lake) and the stockholders listed on Annex B attached hereto are separately making Schedule 13D filings reporting their beneficial ownership of shares of Common Stock.

Pursuant to Rule 13d-4 of the Act, the Reporting Persons expressly declare that the filing of this statement shall not be construed as an admission that any such person is, for the purposes of Section 13(d) and/or Section 13(g) of the Act or otherwise, the beneficial owner of any securities covered by this statement held by any other person. The Reporting Persons expressly disclaim that they have agreed to act as a group other than as described in this Schedule 13D.

(c) Except as otherwise set forth in this Statement, none of the Reporting Persons or, to the best knowledge of such persons, the persons named in Schedule A, has effected any transactions in the Common Stock during the past 60 days.

(d) Not applicable.

(e) Not applicable.

 

Item 6

Contracts, Arrangements, Understandings and Relationships with Respect to Securities of the Issuer.

Stockholders Agreement

In connection with the Distribution, certain of the Reporting Persons, the Silver Lake Funds (as defined below) and the parties set forth on Annex B hereto entered into a stockholders agreement with the Issuer. The Stockholders Agreement, as further described below, contains specific rights, obligations and agreements of these parties as owners of Common Stock. In addition, the Stockholders Agreement contains provisions related to the composition of the Issuers board of directors and its committees and provides that the Issuer will be obligated to reimburse the Silver Lake Funds and the Thoma Bravo Funds (collectively, the Sponsors) and certain of their affiliates for certain out-of-pocket costs and expenses incurred in connection with the separation and distribution, certain advisory services and their ownership of the Issuers stock.

Voting Agreement

Under the Stockholders Agreement, the parties have agreed to take all necessary action, including casting all votes to which such stockholders are entitled to cast at any annual or special meeting of stockholders, to ensure that the composition of the board of directors complies with (and includes all of the nominees in accordance with) the provisions of the Stockholders Agreement related to the composition of the Issuers board of directors and its committees. Pursuant to the terms of the Stockholders Agreement, the Sponsors will be entitled to nominate members of the board of directors as follows:

 

so long as the Silver Lake Funds own, in the aggregate, (i) at least 20% of the aggregate number of outstanding shares of Common Stock immediately following the consummation of the Distribution, affiliates of Silver Lake will be entitled to nominate three directors, (ii) less than 20% but at least 10% of the aggregate number of outstanding shares of Common Stock immediately following the consummation of the distribution, affiliates of Silver Lake will be entitled to nominate two directors, and (iii) less than 10% but at least 5% of the aggregate number of outstanding shares of Common Stock immediately following the consummation of the distribution, affiliates of Silver Lake will be entitled to nominate one director; and

 

so long as the Thoma Bravo Funds and their co-investors own, in the aggregate, (i) at least 20% of the aggregate number of outstanding shares of Common Stock immediately following the consummation of the Distribution, affiliates of Thoma Bravo will be entitled to nominate three directors, (ii) less than 20% but at least 10% of the aggregate number of outstanding shares of Common Stock immediately following the consummation of the Distribution, affiliates of Thoma Bravo will be entitled to nominate two directors, and (iii) less than 10% but at least 5% of the aggregate number of outstanding shares of Common Stock immediately following the consummation of the distribution, affiliates of Thoma Bravo will be entitled to nominate one director.

Notwithstanding the foregoing, the Silver Lake Funds and the Thoma Bravo Funds will each be entitled to nominate three directors only if the total number of directors (inclusive of the number of directors nominated by the Silver Lake Funds and the Thoma Bravo Funds) exceeds seven directors.

The initial Silver Lake Director nominees are Mike Bingle and Michael Widmann and the initial Thoma Bravo Director nominees are Michael Hoffmann and Kristin Nimsger.

Silver Lake and Thoma Bravo Approvals

Under the Stockholders Agreement and subject to the Issuers restated charter, the Issuers restated bylaws and applicable law, for so long as the Sponsors collectively own at least 30% of the aggregate number of outstanding shares of Issuer common stock immediately following the consummation of the distribution, the following actions by the Issuer or any of its subsidiaries would require the prior written consent of each of Silver Lake Partners IV, L.P., Silver Lake Technology Investors IV, L.P., and SLP Aurora Co-Invest, L.P. (the Silver Lake Funds) and the Thoma Bravo Funds so long as each are entitled to nominate at least two directors to the Issuers board of directors. The actions include:

 

change in control transactions;

 

acquiring or disposing of assets or entering into joint ventures with a value in excess of $150 million;

 

incurring indebtedness in an aggregate principal amount in excess of $150 million;

 

initiating any liquidation, dissolution, bankruptcy or other insolvency proceeding involving the Issuer or any of its significant subsidiaries;

 

increasing or decreasing the size of the Issuers board of directors; and

 

terminating the employment of the Issuers chief executive officer or hiring a new chief executive officer.

Transfer Restrictions

Under the Stockholders Agreement, each of the parties has agreed, subject to certain limited exceptions, not to sell, pledge, assign, encumber or otherwise transfer or dispose any Common Stock during the period following the consummation of the Distribution until October 23, 2021 without the consent of the Silver Lake Funds and the Thoma Bravo Funds, as applicable.

Indemnification

Under the Stockholders Agreement, the Issuer has agreed, subject to certain exceptions, to indemnify the Sponsors and various respective affiliated persons from certain losses arising out of the indemnified persons investment in, or actual, alleged or deemed control or ability to influence, the Issuer.

Corporate Opportunities

The Stockholders Agreement contains a covenant that requires the Issuers restated charter to provide for a renunciation of corporate opportunities presented to the Sponsors and their respective affiliates and the directors nominated by the Silver Lake Funds and Thoma Bravo Funds under the Stockholders Agreement to the maximum extent permitted by Section 122(17) of the Delaware General Corporation Law.

The foregoing descriptions of the Stockholders Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of such agreement, which is filed as an exhibit to this Schedule 13D and is incorporated herein by reference.

 

Item 7

Material to be Filed as Exhibits

 

Exhibit 1		Agreement of Joint Filing as required by Rule 13d-1(k)(1) under the Act.
Exhibit 2		Stockholders Agreement dated as of July 19, 2021, by and among N-able, Inc. and the stockholders named therein (incorporated by reference to Exhibit 4.1 to the Issuers Current Report on Form 8-K filed with the SEC on July 20, 2021).

SIGNATURE

After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.

Date: July 28, 2021

 

Annex A

Directors and Executive Officers of the Reporting Persons

The following sets forth certain information regarding the directors and executive officers of The Prudential Insurance Company of America.    The business address of each director and executive officer of The Prudential Insurance Company of America is 751 Broad Street, Newark, NJ 07102.

 

Name		Citizenship		Present Principal Occupation or Employment
Charles F. Lowrey (Director, Chairman and CEO)		USA		Chairman and CEO of Prudential Financial, Inc.
Robert M. Falzon (Director and Vice Chairman)		USA		Vice Chairman of Prudential Financial, Inc.
Thomas J. Baltimore (Director)		USA		Chairman, President and CEO of Park Hotels & Resorts, Inc.
Gilbert Casellas (Director)		USA		Former Chairman of OMNITRU.
Martina Hund-Megean (Director)		USA		Former Chief Financial Officer and member of the Management Committee at MasterCard Worldwide.
Wendy E. Jones (Director)		USA		Former Senior Vice President, Global Operations at eBay, Inc.
Karl J. Krapek (Director)		USA		Former President and COO of United Technologies Corporation
Peter R. Lighte (Director)		USA		Former Vice Chairman of J.P. Morgan Corporate Bank, China and Founding Chairman of J.P. Morgan Chase Bank, China.
George Paz (Director)		USA		Former Non-Executive Chairman of Express Scripts Holding Company.
Sandra Pianalto (Director)		USA		Former President and CEO of the Federal Reserve Bank of Cleveland.
Christine A. Poon		USA		Executive in Residence at the Max M. Fisher College of Business at The Ohio State University.
Douglas A. Scovanner (Director)		USA		Founder and Managing Member of Comprehensive Financial Strategies, LLC.
Michael A. Todman (Director)		USA		Former Vice Chairman of the Whirlpool Corporation.
Kenneth Y. Tanji		USA		Executive Vice President and Chief Financial Officer of Prudential Financial, Inc.
Ann M. Kappler		USA		Executive Vice President and General Counsel of Prudential Financial, Inc.
Scott G. Sleyster		USA		Executive Vice President and Head of International Businesses of Prudential Financial, Inc.
Andrew Sullivan		USA		Executive Vice President and Head of U.S. Businesses of Prudential Financial, Inc.
Lucien A. Alziari		UK		Executive Vice President and Chief Human Resources Officer of Prudential Financial, Inc.
Stacey Goodman		USA		Executive Vice President and Chief Information Officer of Prudential Financial, Inc.
Candace J. Woods		USA		Senior Vice President and Chief Actuary of Prudential Financial, Inc.
Nicholas C. Silitch		USA		Senior Vice President and Chief Risk Officer of Prudential Financial, Inc.
Timothy L. Schmidt		USA		Senior Vice President and Chief Investment Officer of Prudential Financial, Inc.

The following sets forth certain information regarding the directors and executive officers of Prudential Legacy Insurance Company of New Jersey.    The business address of each director and executive officer of Prudential Legacy Insurance Company of New Jersey is 751 Broad Street, Newark, NJ 07102.

 

Name		Citizenship		Present Principal Occupation or Employment
Salene Hitchcock-Gear (Director)		USA		President, Individual Life Insurance of Prudential Financial, Inc.
Markus Coombs (Director and Chief Financial Officer)		USA		Vice President and Chief Financial Officer, Individual Life Insurance of Prudential Financial, Inc.
Robert D. Axel (Director)		USA		Senior Vice President and Controller of Prudential Financial, Inc.
Nandini Mongia (Director)		USA		Senior Vice President and Treasurer of Prudential Financial, Inc.
Timothy L. Schmidt (Director)		USA		Senior Vice President and Chief Investment Officer of Prudential Financial, Inc.
Nicholas C. Silitch (Director)		USA		Senior Vice President and Chief Risk Officer of Prudential Financial, Inc.
Candace J. Woods (Director)		USA		Senior Vice President and Chief Actuary of Prudential Financial, Inc.
Steven M. Weber (Secretary)		USA		Director, Project Management of Prudential Financial, Inc.
Juzer Mohammedshah (Treasurer)		USA		Vice President, Treasury of Prudential Financial, Inc.
Todd Bryden (Chief Actuary)		USA		Vice President and Chief Actuary of Prudential Financial, Inc.

Annex B

List of Other Stockholders Party to the Stockholder Agreement

AlpInvest GA Co C.V.

AlpInvest Partners Co-Investments 2014 I C.V.

AlpInvest Partners Co-Investments 2014 II C.V.

AM 2014 Co C.V.

HarbourVest 2015 Global Fund L.P.

HarbourVest Global Annual Private Equity Fund L.P.

HarbourVest Partners IX Buyout Fund L.P.

HarbourVest Partners X AIF Buyout L.P.

HarbourVest Partners X Buyout Fund L.P.

Hermes USA Investors Venture II LP

Howard Hughes Medical Institute

Lexington Co-Investment Holdings III L.P.

Meranti Fund L.P.

NBIowas Public Universities LP

NB Crossroads XXMC Holdings LP

NB Crossroads XXIMC Holdings LP

NB PEP Holdings Limited

NB RP Co-Investment & Secondary Fund LLC

NB Sonoran Fund Limited Partnership

NB Strategic Co-Investment Partners II Holdings LP

NB Wildcats Fund LP

Neuberger Berman Insurance Fund Series of the SALI Multi-Series Fund L.P.

NPS Co-Investment (A) Fund L.P.

Silver Lake Partners IV, L.P.

Silver Lake Technology Investors IV, L.P.

Silver Lake Technology Associates IV, L.P.

SLP Aurora Co-Invest, L.P.

SMRS-TOPE LLC

TFL Trustee Company Limited as Trustee of the TFL Pension Fund

Thoma Bravo Executive Fund XI, L.P.,

Thoma Bravo Executive Fund XII, L.P.,

Thoma Bravo Executive Fund XII-A, L.P.,

Thoma Bravo Fund XI, L.P.,

Thoma Bravo Fund XI-A, L.P.,

Thoma Bravo Fund XII, L.P.,

Thoma Bravo Fund XII-A, L.P.,

Thoma Bravo Special Opportunities Fund XII, L.P.,

Thoma Bravo Special Opportunities Fund XII-A, L.P.