Citrix Systems launches $4.05 billion term loan at SOFR plus 450 bps

By Sara Rosenberg

New York, Sept. 8 – Citrix Systems Inc. (Tibco Software Inc.) launched on Thursday its $4.05 billion 6.5-year term loan B with price talk of SOFR+10 basis points CSA plus 450 bps with a 0.5% floor and an original issue discount of 92, according to a market source.

The term loan B has 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on Sept. 19, the source added.

The company is also getting a $500 million equivalent euro 6.5-year term loan B.

BofA Securities Inc., Credit Suisse Securities (USA) LLC and Goldman Sachs Bank USA are joint lead arrangers with additional banks. Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., KKR Capital Markets LLC, Mizuho Bank, Morgan Stanley Senior Funding Inc. and RBC Capital Markets were all part of the original debt commitment group.

Proceeds will be used to help fund the buyout of the company by Vista Equity Partners and Evergreen Coast Capital Corp. 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.

Citrix is being bought for $104.00 in cash per share. The transaction is valued at $16.5 billion, including the assumption of debt.

Other funds for the transaction are expected to come from a $1 billion revolving credit facility, a term loan A, new notes, preferred stock and equity.

Closing is expected during the last week of September, subject to customary conditions. All regulatory approvals for the transaction have been received.

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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