Veritas has revived the secured-bond component of the cross-border debt financing package backing The Carlyle Group’s acquisition of the company from Symantec, sources said. The software company is pitching $387 million of seven-year notes as well as €230 million of notes with the same maturity, both non-call three.
Bookrunners on the deal are Morgan Stanley, Bank of America Merrill Lynch, UBS, Jefferies, Barclays, Citi, Mizuho, with pricing expected as early as today, sources added. Ratings for the proposed notes are B+/B1.
Last November, Veritas postponed both the loan and bond components of the cross-border debt financing package, citing market conditions. Bank of America Merrill Lynch, Morgan Stanley, UBS, Jefferies, Barclays, Citigroup, Credit Suisse, and Goldman Sachs were listed as arrangers on the transaction, with BAML as left lead on the loans and Morgan Stanley as left lead on the bonds.
At the time, the U.S. dollar component of the loan transaction being sold to investors was reduced by $950 million, to $1.5 billion, from $2.45 billion. Of that $950 million, $250 million was expected to be tacked onto the secured bond deal, originally outlined as $500 million, while the arrangers would have held the $700 million balance, sources said at the time.
This June, the cross-border LBO loan portion of the deal was completed (See “Veritas underwriters complete sale of LBO loans at 85; terms” LCD News, June 15, 2016), at which time it was noted that $750 million of cross-border secured notes remained in the pipeline from the issuer. The $1.941 billion TLB-1 is currently marked at 93/94, and the TLB-2 is quoted at 89.5/91.5, sources said. — Staff reports
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