S&P rates Tibco notes B

S&P said it gave B issue and 3 recovery ratings to the up to $4 billion of senior secured notes due in 2029 to be issued by Tibco Software Inc.

The notes will be issued under a $15 billion debt financing package to partially fund the acquisition of Citrix Systems Inc. and the subsequent merger with Tibco. Recently created Picard Midco Inc. will serve as an escrow issuer since this offering will occur before the Citrix/Tibco deals are completed. Once finished, which is expected before the end of September, Tibco will become the ultimate issuer.

“The notes are larger than the $3.5 billion we expected to be issued in our Sept. 8, 2022, rating actions on Picard Midco, Balboa Intermediate Holdings LLC, and Tibco. Nevertheless, we understand the difference will be offset by lower term loan A principal, which we assume to be first-lien senior secured issues that will rank pari passu. We also expect the company to have $15 billion in funded debt at close.

“As such, our B issuer credit ratings and stable outlooks on Picard Midco, Balboa, and Tibco Software are unchanged, as are our B issue-level and 3 recovery ratings on the term loan A due in 2028, U.S. dollar tranche term loan B due in 2029, euro tranche term loan B due in 2029, and $1 billion revolving credit facility due in 2027,” S&P said in a press release.

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