Veritas upsizes multi-tranche bond deal to $2.53 billion equivalent, downsizes loan

By Paul A. Harris

Portland, Ore., Nov. 12 – Veritas Technologies LLC upsized its four-part offering of high-yield notes to $2,525,000,000 from $2,275,000,000 equivalent, a market source said on Thursday.

The company shifted the $250 million equivalent of proceeds to the secured bonds from its concurrent term loan, which it downsized to $2.21 billion from $2.46 billion.

The bond upsizing comes in the two tranches of seven-year senior secured notes (B1/B+) – one each in dollars and euros – which were increased to $750 million equivalent from $500 million equivalent.

The overall size of the eight-year senior unsecured notes (Caa1/CCC+) – also coming in dollar- and euro-denominated tranches – remains unchanged at $1,775,000,000 equivalent.

Individual tranche sizes remain to be determined.

The Rule 144A for life and Regulation S deal is expected to price late this week.

Morgan Stanley & Co. LLC, BofA Merrill Lynch, UBS Investment Bank, Jefferies LLC, Citigroup Global Markets Inc. and Goldman Sachs & Co. are the joint bookrunners.

The notes in both tranches come with three years of call protection.

Proceeds will be used to help fund the buyout of Veritas Technologies LLC by the Carlyle Group from Symantec Corp.

The issuing entities will be Veritas Bermuda Ltd. and Veritas US Inc.

Veritas is a Mountain View, Calif.-based provider of storage and server management software solutions.

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