Citrix offers to buy back 2027 notes, plans to call 2026, 2030 notes

By Marisa Wong

Los Angeles, Aug. 29 – Citrix Systems, Inc. will carry out a repurchase offer for its 4.5% senior notes due 2027 and redemptions of its 1.25% senior notes due 2026 and 3.3% senior notes due 2030 in connection with its acquisition by Vista Equity Partners and Evergreen Coast Capital Corp.

Repurchase offer

On Aug. 29, Citrix began an offer to repurchase for cash up to $750 million aggregate principal amount of its outstanding 4.5% notes due 2027 at 101 plus accrued interest, according to an 8-K filing with the Securities and Exchange Commission.

The merger will constitute a change of control under the indenture governing the notes and, assuming the 2027 notes will cease to be rated investment grade by at least two of the three rating agencies in connection with the merger (a ratings event), will constitute a change-of-control repurchase event.

The repurchase offer is subject to some conditions, including both the consummation of the merger and the occurrence of a ratings event in connection with the merger.

Holders of the 2027 notes are not obligated to tender their notes under the repurchase offer, and the completion of the repurchase offer is not a condition to the consummation of the merger.

Redemptions

In connection with the merger, the company also expects to issue notices of conditional redemption for all of its outstanding 1.25% senior notes due 2026 and 3.3% senior notes due 2030.

The company plans to redeem each series of notes at par plus a make-whole premium, along with accrued interest to but excluding the redemption date.

Any redemption will be conditioned on the consummation of the merger.

Citrix is a Fort Lauderdale, Fla.-based provider of secure, unified digital workspace technology.

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