Picard/Citrix sets wide-to-talk final pricing on $4 billion secured notes at 10%; pricing Tuesday

By Paul A. Harris

Portland, Ore., Sept. 20 – Citrix Systems Inc. set final pricing in its $4 billion offering of Picard Midco, Inc. 6.5-year senior secured notes (S&P: B) with a wide-to-talk yield of 10%, implying an original issue discount of 83.561, according to market sources.

Order reconfirmations are due at 1 p.m. ET on Tuesday.

The 10% yield comes 25 basis points beyond the wide end of the 9½% to 9¾% yield talk.

The issue price comes about a dollar cheap to earlier formal discount talk of 85.695 to 84.62.

Initial talk had the Picard/Citrix notes coming with a 6½% coupon at a discount of 88 to 90 to yield in the high-8% to 9% area, according to sources.

When dealers launched official price talk on Monday, they also detailed a list of investor-friendly covenant changes which primarily bear upon how the company may disburse cash and incur additional debt.

At that time, the close-of-books for the bonds was scheduled for 5 p.m. ET on Monday, at which point orders for the Citrix bonds modestly exceeded deal size, according to a market source, who added that demand for the concurrent $4.05 billion term loan B was somewhat stronger.

Credit Suisse Securities (USA) LLC is the left bookrunner for the secured notes offering.

BofA Securities Inc., Goldman Sachs & Co. LLC, Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., KKR Capital Markets LLC, Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, RBC Capital Markets LLC, Apollo Global Securities LLC, Jefferies LLC, BMO Capital Markets Corp., BNP Paribas Securities Corp., Guggenheim, HSBC Securities (USA) Inc., Macquarie Capital (USA) Inc., Nomura Securities International Inc., Truist Securities Inc., UBS Securities LLC, Wells Fargo Securities LLC, KeyBanc Capital Markets Inc., MUFG, Scotia Capital (USA) Inc., SG Americas Securities LLC, Stifel Nicolaus & Co. Inc., SPC, TD Securities (USA) LLC, Fifth Third Securities Inc., ING Financial Markets LLC, IMI, Natixis Securities Americas LLC, Santander Investment Securities Inc. and U.S. Bancorp Investments Inc. are the joint bookrunners.

The notes become callable after three years at par plus 50% of the coupon. They feature a three-year 40% equity clawback and a 101% poison put.

The notes offering was upsized to $4 billion from $3.5 billion (initially $3 billion) with the shift of proceeds to the notes from the term loan A, reducing the loan to $2.5 billion from $3 billion (initially $3.5 billion).

In addition to the secured notes and the dollar-denominated term loans the company is also getting a $500 million equivalent euro-denominated term loan B and a $1 billion five-year revolver.

Proceeds plus preferred stock and equity will be used to fund the buyout, as well as the merger of Citrix with Tibco Software Inc., a Vista portfolio company, also to repay substantially all of Citrix’s and Tibco’s debt and for general corporate purposes.

Citrix, based in Fort Lauderdale, Fla., and Tibco, based in Palo Alto, Calif., are business enterprise technology companies.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.