Citrix bankers pitch fresh structure for Us$15bil buyout

NEW YORK: Citrix Systems Inc bankers are doing whatever it takes to get one of the biggest buyout financings of the past decade off their books, pitching investors a revised Us$15bil (Rm67bil) deal to help limit potential losses as the credit market thaws.

The banks, which are holding pre-marketing discussions with investors this week, are gauging interest in a new potential Us$500mil (Rm2.2bil)-equivalent leveraged loan denominated in euros, according to people with knowledge of the matter.

The expected secured bond portion of the financing is now Us$3bil (Rm13.4bil) in size, said the people, who asked not to be identified discussing a private transaction, lower than the original debt commitments of Us$4bil (Rm17.9bil), according to a January filing.

The revised structure is the latest iteration of the large financing package as the group of banks led by Bank of America Corp (BOA) seek to capitalise on the recent credit rally that’s provided an opportunity, possibly a narrow one, to offload the debt.

The formal launch of the deal, which may still change, is expected after the United States Labour Day holiday on Sept 5.

Representatives for Credit Suisse Group AG, which is leading the secured bond, and Goldman Sachs Group Inc, which is leading the unsecured bond, declined to comment.

Representatives for BOA, which is leading the loan portion, and Citrix didn’t immediately respond to requests for comment.

Bankers have already revamped other parts of the deal to make it easier to sell, Bloomberg previously reported.

The cohort had originally promised to provide the financing that will help support the buyout of the software company by private equity firms Vista Equity Partners and Elliott Investment Management back in January.