Covetrus releases first-lien term loan price talk; Citrix Systems term loan B on deck

By Sara Rosenberg

New York, Sept. 7 – On the new deal front, Covetrus Inc. (Corgi BidCo Inc.) came out with pricing guidance on its first-lien term loan with its call on Wednesday.

Also, Citrix Systems Inc. (Tibco Software Inc.) set a lender call for this week for its proposed term loan B.

Covetrus guidance

Covetrus held its lender call in the morning and released price talk on its $1.525 billion seven-year covenant-lite first-lien term loan (B1/B-) at SOFR plus 475 basis points to 500 bps with a 0.5% floor and an original issue discount of 95 to 96, a market source remarked.

The first-lien term loan has 101 soft call protection for six months.

Commitments are due at 3 p.m. ET on Sept. 19.

The company is also getting a $350 million privately placed second-lien term loan, and is expected to get a $300 million five-year revolver.

Deutsche Bank Securities Inc., UBS Investment Bank, BMO Capital Markets, Mizuho Securities USA LLC, TD Securities (USA) LLC, Santander Bank and ING Capital LLC are leading the deal that will be used with equity to fund the buyout of the company by Clayton, Dubilier & Rice and TPG Capital for $21.00 per share in cash, representing an enterprise value of about $4 billion. Clayton, Dubilier & Rice currently owns around 24% of the company’s outstanding shares of common stock.

Closing is expected this year, subject to regulatory and shareholder approval and other conditions.

Covetrus is a Portland, Me.-based animal-health technology and services company.

Citrix readies deal

Citrix emerged with plans to hold a lender call at 11 a.m. ET on Thursday to launch a $4.05 billion 6.5-year term loan B, a market source said.

The term loan B has 101 soft call protection for six months, the source added.

The company is also getting a $500 million equivalent euro 6.5-year term loan B, and is expected to get a $1 billion revolver and a $3.5 billion term loan A.

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.

Citrix being acquired

Citrix will use the new term loan debt, along with new notes, preferred stock and equity, to fund its buyout by Vista Equity Partners and Evergreen Coast Capital Corp. for $104.00 in cash per share in a transaction valued at $16.5 billion, including the assumption of debt, and merger with Tibco Software Inc., one of Vista’s portfolio companies, to repay existing debt at Citrix and Tibco and to add cash to the balance sheet.

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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