https://news.bloomberglaw.com/bankruptcy-law/banks-prepare-14-billion-of-bonds-and-loans-for-citrix-lbo-bid
11 replies (most recent on top)
a LBO would be disastrous for current employees...
The most likely scenario would be the “split up” - I’m leaning this way bc the way the org chart is presented
But the repackaging plan implies that the private equity firms know more about the business than our ELT (which could very well be true)
My money is on “split up” +325 odds
All I know is that ELT and mgmt f’d this up ( not me) to get us to this point. Fire them all
https://www.investopedia.com/articles/financial-theory/08/leveraged-buyouts.asp
Well we know it won't be the "Savior Plan" so are there any educated guesses as to which of the other 3 it will be?
To explain leveraged buyouts in easier-to-understand terms, let’s say you buy a house. Under normal circumstances, if you can’t pay for the mortgage, you would be in trouble. But by the LBO rules, you’re only responsible for a portion. If you pay for 30 percent of the house, the other 70 percent of the asking price is debt placed on the house. The house owes that money to the bank or creditor who lent it, not you. Of course, a house can’t owe money. But under the private equity model, it does, and its assets — its factories, stores, equipment, etc. — are collateral.
That's how it works. Not like your regular mortgage.
To the person below:
That's normal, similar to how mortgages work.
now I could have read this incorrectly, but it looks like the loans etc. will be owned by the Citrix entity. That is to say, Citrix assets will be the collateral on the debt...
Am I reading it right?
Doesn't seem too fair.... I want to buy you so I get you to borrow a lot of money... now I own you and the debt obligation is yours...
I do understand why it is like it is (the system makes it better for the buyer), and, there are better experts out there who can educate me, but it just doesn't strike as fair for the company really.
Full article:
https://archive.md/MU0v2
Trying to figure out how they are gonna spin those losing Q4 numbers before the street release .... we got good news and bad news - good news is we're getting acquired - bad news is that we were 40% of our Q4 forecast
Banks Prepare $14 Billion of Bonds and Loans for Citrix LBO Bid
Lenders including Bank of America Corp.are putting together a financing package that could lead to around $14 billion of bonds and loans to fund a potential buyoutof software-maker Citrix Systems Inc., in what would be one of the largest private equity deals in over a decade.
No matter what the full says, the intro says enough.
Corporate banking insiders doing the circle jerk.
Anyone with access willing to post the entire article?