Apollo, Franklin among buyers of Citrix debt


The Citrix financing was widely seen as a turning point in US credit markets earlier this year, signalling that an era of easy money was drawing to an end as the Federal Reserve hikes rates. — Reuters

NEW YORK: Apollo Global Management Inc and Franklin Templeton are among investors that bought US$750mil (RM3.3bil) of debt backing the buyout of Citrix Systems Inc, helping Wall Street banks chip away at billions of dollars in risky loans clogging their balance sheets.

Some of the more than 30 lenders that helped fund the leveraged buyout (LBO) of the software company sold the term loans, reducing the US$6.5bil (RM28.6bil) of debt they’ve been left holding for about two months, according to people with knowledge of the matter.

Diameter Capital Partners, which Apollo owns a stake in, also bought a portion of the US$750mil (RM3.3bil) debt, said the people, who asked not to be identified discussing a private transaction.

The US$750mil (RM3.3bil) of debt was sold at 87 US cents (RM3.82) on the dollar, according to different people with knowledge of the matter, who asked not to be identified.

That’s lower than where the original US$4.05bil (RM17.8bil) buyout loan is trading in the secondary market at around 90.25 cents (RM4.07) on the dollar, according to another person with knowledge of the matter.

The Citrix financing was widely seen as a turning point in US credit markets earlier this year, signalling that an era of easy money was drawing to an end as the Federal Reserve hikes rates. The latest Citrix transaction reduces the amount of US$2.5bil (RM10.9bil) of debt. — Bloomberg

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Citrix , debts , buyout , Apollo , FranklinTempleton

   

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