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Sept. 23, 2022, 8:40 a.m. EDT

Citrix debt deal prices with large losses for banks

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By Alexander Saeedy and Laura Cooper

Investment banks including Bank of America Corp., Credit Suisse Group AG and Goldman Sachs Group Inc. are on track to collectively lose more than $500 million on debt backing the largest U.S. leveraged buyout of the year after it was sold to investors at a steep discount.

The $4 billion in bonds backing the $16.5 billion take-private deal for Citrix Systems Inc. were auctioned off Tuesday at a 16% discount, netting around $500 million in losses alone for underwriting banks, according to people familiar with the matter and pricing term sheets viewed by The Wall Street Journal.

The banks /zigman2/quotes/200894270/composite BAC -1.29% /zigman2/quotes/202835784/composite CS +9.39% /zigman2/quotes/209237603/composite GS -0.84% additionally sold a $4.1 billion loan at a 9% discount to face value, with losses north of $100 million, the people said.

Vista Equity Partners and Elliott Management Corp.’s private-equity arm Evergreen Coast Capital struck the deal to buy Citrix in late January, before the selloff in stocks and bonds accelerated. In all, the transaction is to be funded with about $15 billion worth of debt.

An expanded version of this report appears on WSJ.com.

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/zigman2/quotes/200894270/composite
US : U.S.: NYSE
$ 36.08
-0.47 -1.29%
Volume: 42.30M
Dec. 2, 2022 4:00p
P/E Ratio
11.44
Dividend Yield
2.44%
Market Cap
$289.45 billion
Rev. per Employee
$507,534
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/zigman2/quotes/202835784/composite
US : U.S.: NYSE
$ 3.38
+0.29 +9.39%
Volume: 34.67M
Dec. 2, 2022 4:00p
P/E Ratio
N/A
Dividend Yield
1.15%
Market Cap
$12.29 billion
Rev. per Employee
$450,047
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/zigman2/quotes/209237603/composite
US : U.S.: NYSE
$ 380.58
-3.23 -0.84%
Volume: 1.93M
Dec. 2, 2022 4:00p
P/E Ratio
10.14
Dividend Yield
2.63%
Market Cap
$128.88 billion
Rev. per Employee
$1.30M
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