Goldman Sachs offers Citrix debt at 14pc yield

A group of banks led by Goldman Sachs Group launched a £3.84bn deal to offload the riskiest chunk of financing from last year’s Citrix Systems buyout, according to people with knowledge of the matter. fter being saddled with the debt for months, the banks are offering the 6.5-year second-lien notes at a coupon of 9pc, said the people, who asked not to be named discussing a private transaction. The bonds are initially being marketed at a heavily discounted price of 78 cents, bringing the all-in yield to roughly 14pc, said the people. Goldman Sachs and others previously floated a yield of 13pc-14pc in February.

Representatives for Goldman Sachs, Citrix and buyout sponsors Vista Equity Partners and Elliott Investment Management didn’t respond to requests for comment on the initial pricing. This last major portion of the Citrix financing is considered the riskiest because investors won’t be given first priority should the company ever go bankrupt. It’s also the first subordinated debt offering to come to the high-yield market this year, according to data compiled by Bloomberg.

The current bond sale means banks are within striking distance of unhooking themselves from the biggest piece of remaining debt supporting Vista and Elliott’s acquisition of Citrix. It would also put a bow on the deal that was expected to net banks hefty fees but instead underscored the difficulty of offloading mistimed financing commitments. Lenders had originally provided £15bn of debt financing for the buyout, but only managed to sell £8.55bn of bonds and loans at rock-bottom prices before the transaction closed.

They have pared that amount over the past few months, including a £271.6m portion offloaded earlier this year.

Banks have been struggling to sell debt languishing in their books from high-profile deals such as the take-private of Twitter and the combination of NielsenIQ and GfK. 

Tags:

espa listed on couponmatrix.ukgltc listed on couponmatrix.uklaithwaites-wine listed on couponmatrix.ukmolton-brown listed on couponmatrix.uksweatband listed on couponmatrix.ukt-g-i-fridays listed on couponmatrix.uk
espa listed on couponmatrix.ukLooking for a new range of beauty products which are more than skin deep? With ESPA, you’ll find a new way of unwinding and caring for your body thanks to their expert combination of science, holistic techniques and effective natural ingredients. If you’re looking for something specific, ESPA even offer the ability to shop by mood, so you can use your ESPA discount code to help create the you you’ve always wanted to be.
gltc listed on couponmatrix.ukGLTC aims to inspire and help parents make the most of childhood and their family home. The range focuses on three key areas; good-looking, essential wooden toys which encourage learning through play; smart storage which helps parents organise and simplify their homes; and well-designed children's bedroom furniture and accessories to create the perfect spaces for children to grow, play, learn and sleep. With a GLTC discount code from us you can kit out your kids spaces for less. Useful, beautiful products that don't cost the earth - what's not to love?
laithwaites-wine listed on couponmatrix.ukFrom the smooth sophistication of an Italian red to the dry, crispness of a French white, find a drop to excite the palate with a Laithwaite’s Wines. Pick up bargains on wine from all over the globe, from Argentina to the Antipodes via the Mediterranean, and browse a list of regional classics from Tuscany, Bordeaux and beyond. With a Laithwaite's voucher code you can stock up on your favourite tipple for less! Bring some naughty fizz to special occasions with Champagne and sparkling wine, and peruse an array of award winners in differing grape varieties, from Pinot Noir to Semillon.
molton-brown listed on couponmatrix.ukOver the decades Molton Brown has built up a reputation for being London's top bath, body and beauty connoisseurs. For perfumes, shower gels, body lotions, candles and hand care products that really stand out on the shelf, grab a Molton Brown discount code and save yourself a pretty penny. You'll now find Molton Brown in five-star hotels, stylish homes and high-end department stores across the world and yet each product is still blended in London, our home since 1973.
sweatband listed on couponmatrix.ukWelcome to Sweatband, the fitness and sports superstore to drive your goals. Here, you’ll find everything from gym equipment to sportswear and clothing. Providing the highest quality cutting edge equipment, clothing and training aids and all for an affordable price, Sweatband can take your ambitions to the next level. With the Sweatband voucher code you can enjoy the highest quality sportswear for less. Whether you’re a keen tennis, rugby, or football player, love going running, hitting the gym or driving your fitness goals in a thousand ways, Sweatband is the superstore for you.
t-g-i-fridays listed on couponmatrix.ukSince it first fired up the grill in New York City more than 50 years ago, TGI Fridays have gone from strength to strength to become one of the world’s favourite restaurant chains. If you’ve got a bit of an appetite, tuck into a delicious feast for less with one of our TGI Fridays vouchers. Offering classic all-American selections such as juicy hamburgers and thickshakes, you’re sure to leave TGI Fridays with a smile on your face.