Citrix Systems changes OID on U.S. and euro term loan Bs to 91

By Sara Rosenberg

New York, Sept. 20 – Citrix Systems Inc. (Tibco Software Inc.) revised original issue discount talk on its $4.05 billion 6.5-year term loan B and $500 million equivalent euro 6.5-year term loan B to a range of 91 to 92 from just 92 and then finalized the discount on the two tranches at 91, according to a market source.

Pricing on the U.S. term loan B remained at SOFR+10 bps CSA plus 450 bps with a 0.5% floor, and pricing on the euro term loan B remained at Euribor plus 450 bps with a 0% floor.

Both term loans still have 101 soft call protection for one year.

Recommitments were scheduled to be due at 1 p.m. ET on Tuesday, the source added.

Previously in syndication, the call protection was extended from six months, leverage-based pricing step-downs were removed, MFN was changed to 50 bps with an 18-month sunset from 75 bps with a six-month sunset and certain carve-outs were removed, incremental was reduced to $1.525 billion with a 0.75x grower from $2.025 billion with a 1x grower and “no worse” prongs were removed, the inside maturity basket was removed, permitted alternative security debt was eliminated, asset-sale step-downs were removed, the reinvestment period for asset sales was revised to 18 months from 24 months with a six-month extension, changes were made to the excess cash flow sweep, debt incurrence, restricted payments, permitted investments, available amount, EBITDA and permitted liens, and Chewy and Serta protections were added.

The company’s $8.05 billion equivalent credit facilities (B) also include a $1 billion five-year revolver and a $2.5 billion six-year term loan A.

The term loan A was downsized recently from a revised amount of $3 billion and an initial size of $3.5 billion as the company’s 6.5-year first-lien secured notes offering was increased to $4 billion from a revised amount of $3.5 billion and an initial size of $3 billion.

BofA Securities Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., KKR Capital Markets LLC, Mizuho Bank, Morgan Stanley Senior Funding Inc., RBC Capital Markets, Apollo Global Funding, Jefferies LLC, HSBC Securities (USA) Inc., Macquarie Capital (USA) Inc., Nomura Securities International Inc., Truist Securities Inc., UBS Securities LLC, Wells Fargo Securities LLC, Fifth Third Bank, ING Capital LLC, Intesa Sanpaolo, KeyBanc Capital Markets Inc., MUFG, Natixis, Santander Bank, The Bank of Nova Scotia, Silicon Valley Bank, Societe Generale, Stifel Nicolaus and Co., SPC Capital Markets LLC, TD Securities (USA) LLC and U.S. Bank are the joint lead arrangers and bookrunners on the deal.

Proceeds will be used with $3.95 billion of seven-year second-lien secured debt, $2.5 billion of preferred equity and roughly $6.5 billion of equity to fund the buyout of the company by Vista Equity Partners and Evergreen Coast Capital Corp. for $104.00 in cash per share and merger with Tibco Software Inc., one of Vista’s portfolio companies, repay existing debt at Citrix and Tibco and add cash to the balance sheet.

Closing is expected during the last week of September, subject to customary conditions.

Citrix is a Fort Lauderdale, Fla.-based provider of secure, unified digital workspace technology. Tibco is a Palo Alto, Calif.-based infrastructure and business intelligence software company.

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