Citrix cuts term loan A to $2.5 billion as notes lifted to $4 billion

By Sara Rosenberg

New York, Sept. 12 – Citrix Systems Inc. (Tibco Software Inc.) downsized its six-year term loan A to $2.5 billion from a most recent amount of $3 billion and an initial size of $3.5 billion, according to a market source.

The company’s 6.5-year first-lien secured notes offering was upsized to $4 billion with the term loan A downsizing, from a most recent size of $3.5 billion and an initial amount of $3 billion, the source said.

As previously reported, the company is also getting a $4.05 billion 6.5-year term loan B, a $500 million equivalent euro 6.5-year term loan B and a $1 billion five-year revolving credit facility.

The U.S. term loan B launched with a lender call last week with talk of SOFR+10 basis points CSA plus 450 bps with a 0.5% floor, an original issue discount of 92 and 101 soft call protection for six months.

Commitments for the U.S. term loan B are due at 5 p.m. ET on Sept. 19.

BofA Securities Inc., Credit Suisse Securities (USA) LLC and Goldman Sachs Bank USA are joint lead arrangers with additional banks on Citrix’s term loan debt. 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 $3.95 billion of seven-year second-lien secured debt, $2.5 billion of preferred equity and $6.511 billion of equity.

Net first-lien debt is 5.1x and net total debt is 7x.

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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