Investors on edge before $15bn debt sale to fund Citrix buyout

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Bankers arranged $15bn in debt financing to fund the leveraged buyout of software maker Citrix. But as they attempted to sell the bonds and loans over the past week, they shocked prospective investors by revealing that the company would need to borrow even more money soon after the deal closed.

On a call last Thursday, executives at Citrix acquirers Vista Equity Partners and Elliott Management explained that soon after their transaction closes, the company would need to draw from a revolving credit line to help fund $200mn in cost-cutting initiatives and the movement of some staff to outside the US, according to four people briefed on the matter.

“They don’t have cash on hand and cash in the business to pay for severance and other wind-down cash expenses,” said one investor on the call. “It was lousy.”

The marketing of Citrix’s debt has become a closely watched gauge of Wall Street’s dealmaking abilities, and it has been difficult. The banks agreed the…



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