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© Reuters. FILE PHOTO: Citrix Programs brand is seen on smartphone positioned on U.S. {Dollars} on this illustration taken, January 31, 2022. REUTERS/Dado Ruvic/Illustration/File Photograph
By Matt Tracy and Abigail Summerville
WASHINGTON (Reuters) – A Goldman Sachs Group (NYSE:) Inc-led group of banks will maintain an investor name on Monday to promote $3.8 billion in Citrix Programs (NASDAQ:) bonds, in accordance with two sources acquainted with the matter, in an indication that the marketplace for junk debt that was roiled by final month’s banking disaster is beginning to thaw.
It’s by far the largest junk debt sale for the reason that failures final month of U.S. regional banks Silicon Valley Financial institution and Signature Financial institution (OTC:) and the compelled sale of Credit score Suisse Group AG to Swiss peer UBS Group AG (SIX:).
Issuance of junk bonds within the U.S. dropped from $13.9 billion in February to $4.45 billion in March, in accordance with Informa, because the market turmoil soured danger urge for food.
“The leveraged finance market has been extremely quiet this 12 months,” stated Tim Leary, senior portfolio supervisor at BlueBay Asset Administration.
The brand new Citrix bonds will refinance most of a $3.95 billion unsecured bridge mortgage that helped personal fairness corporations Vista Fairness and Evergreen Coast Capital purchase the cloud software program maker for $16.5 billion in September 2022. The mortgage would have matured in September 2023.
The banks will maintain a name with buyers within the afternoon on Monday and stage displays for them via Tuesday.
The 6.5-year notes are being marketed with a 9% coupon and will probably be non-callable via September 2025, in accordance with one of many sources.
Along with Goldman Sachs, the 33-bank arranger group contains Financial institution of America (NYSE:), Credit score Suisse, Barclays (LON:), Citibank and Deutsche Financial institution (ETR:).
Citrix, Vista, Evergreen and Goldman Sachs declined to remark.
The banks had been capable of promote $8.55 billion of the Citrix buyout debt to buyers by September final 12 months, realizing roughly $600 million in losses as buyers demanded steep reductions within the wake of a fast rise in rates of interest. A number of block trades of the remaining debt have since then taken place.
Along with Citrix, banks are anticipated to market to buyers a portion of the $5.4 billion in debt which final 12 months financed auto elements provider Tenneco’s buyout by Apollo World Administration (NYSE:).
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